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Brazil’s central bank trusts reserves to deal with Brexit

Brazil's central bank trusts reserves to deal with Brexit | iNFOnews.ca
A broker watches his screens at a brokerage firm in Sao Paulo, Brazil, Friday, June 24, 2016. Sao Paulo's stock exchange was falling at midday more than 3 percent due to result of the referendum aimed at revoking Britain's membership in the EU. Brazil's central bank said on Friday that the country has solid foundations to face the United Kingdom's decision to leave the European Union, with enough foreign reserves to handle possible cash outflows. (AP Photo/Andre Penner)

RIO DE JANEIRO – Brazil’s central bank said Friday it has solid foundations to economically weather the United Kingdom’s decision to leave the European Union, with enough foreign reserves to handle possible cash outflows.

The country’s economic authority said that if necessary it will adopt measures to prevent turmoil in the country’s foreign exchange and financial markets.

Brazil’s economy is expected to dip 3 per cent this year after a fall of almost 4 per cent in 2015.

Sao Paulo’s stock exchange at 3 p.m. had fallen more than 3 per cent as a result of the referendum.

Brazil’s interim government hopes to reach a deal with the EU to reverse the crisis in Latin America’s biggest economy.

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