The Brazilian Real appreciated for the second consecutive day.

This Thursday, Brazil’s currency appreciated by 1.31% to 5.4832 units per dollar, while the Bovespa index of the B3 stock exchange in São Paulo rose 0.39% to 126,155.29 points. The investment climate in Brazil improved after President Lula Da Silva and the Central Bank reaffirmed their commitment to maintaining public finances in order.

Brazilian President Luiz Inácio Lula da Silva emphasized that fiscal responsibility is a commitment of his government to address financial market concerns and the recent strong appreciation of the dollar at the expense of the real.

“We spend money on what is necessary, invest in education and health as needed, but we do not waste money; fiscal responsibility is not just a word, it has been this government’s commitment since 2003 (when he first took office) and we will keep it in check,” he said during an event on family agriculture at the Planalto Palace.

In recent days, Lula has criticized the high interest rates and the actions of the Central Bank, which he believes are hindering the growth of the Brazilian economy. Concurrently, the dollar had strengthened significantly amid market concerns over Brazil’s fiscal situation.

The president recently admitted that the rise of the dollar is worrisome, and on Wednesday, he met with Economy Minister Fernando Haddad to discuss potential public spending cuts. Haddad also sought to reassure the market, stating that the exchange rate would stabilize and that the Central Bank has the autonomy to take appropriate measures.