Galípolo: It is strange that criticism of the BC's PEC comes from the economic team

The president of the Central Bank, Gabriel Galípolo, stated this Monday (25) that it is strange that fiscal criticisms of the PEC (Proposed Amendment to the Constitution) 65 come from the economic team, since it was precisely up to its members to prepare this section of the text.

"I have read in some places that some members of the economic team would be concerned about the issue of the impact on the primary result and on the Treasury's relationship with the Central Bank. Of course, I imagine that someone has heard, I'm not doubting who wrote this, no. But we receive it with some strangeness because, effectively, the text and the form that is put there came precisely from the economic team and consolidated by the AGU", said Galípolo, citing the Federal Attorney General's Office.

The president of the BC amended that, if there was a proposal for a total overrun, in which the BC had to fully absorb the result of accounting variations, this alternative would have his support.

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"We sign now, we leave with the agreement here, given that the Central Bank fully absorbs the result. Why? Because of the question that we discussed now about how the Central Bank works. The Central Bank of Brazil does not have a big impact, let's say, in terms of the cost of operationalizing monetary policy, because I am using public bonds. Most of the Central Bank's result comes from exchange rate variations," he said.

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Source: CNN