BRASILIA, June 7 (Xinhua) -- Brazil's economic foundations are sound enough to withstand the current exchange rate volatility, Finance Minister Eduardo Guardia said on Thursday.
The National Treasury and the central bank are coordinating measures to cushion the impact of the U.S. dollar's recent rise against the Brazilian real, he said.
The dollar has been gaining ground against foreign currencies around the world, not just in Brazil, but with October elections looming, the fluctuating exchange rate has caused more of a stir, he noted.
"There is greater attention on Brazil's case given the election scenario, that makes markets more volatile," Guardia told reporters at a press conference.
The dollar climbed to more than 3.90 reals on Thursday, the highest figure in more than two years.
To allay fears the real may be undermined by speculation, Guardia highlighted the strength of the nation's foreign reserves and the reduced size of the current account deficit.
"All of that really reinforces the solidity of the Brazilian economy to withstand this moment," he said.
Guardia used the opportunity to press for reforms, mainly to the country's social security system, to be better withstand such volatility.
The government's legislative agenda "is very important to advancing in the right direction," he said.
Guardia deflected questions about whether the central bank would raise interest rates to counter the strong dollar, saying it was monetary policy and not in his jurisdiction.
"The Finance Ministry will never comment on interests," said Guardia.