Brazil central banker urges pension overhaul to avoid market turmoil
Brazil’s congress needs to reform the country’s pension system while global markets are favorable or risks facing more volatility, central bank chief Ilan Goldfajn said on Tuesday during an event in Uruguay. “We don’t have until the end of times to do what must be done,” Goldfajn said during a panel with fellow central bank presidents from Latin America.
Talks resumed last month after the lower house voted to reject a criminal charge against President Michel Temer. But pessimism over his chances to pass sweeping reforms has started to creep into Brazilian markets, with stocks falling to a two-month-low on Tuesday.
Goldfajn said the biggest risk for Brazil and other emerging markets are related to higher interest rates in the United States and other developed economies. The central bank has previously said the world economy lives a benign period.
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