Brazil has enough reserves to withstand Trump’s decisions, says Lula
President Luiz Inácio Lula da Silva said on Monday (Apr. 7) that Brazil has sufficient foreign exchange reserves to withstand decisions made by the Donald Trump istration. Speaking at an event to announce investments in the logistics sector in Cajamar, São Paulo state, Lula also reaffirmed that the Brazilian economy will once again grow more than expected in 2025.
“Whatever President Trump says, Brazil is secure because we have a cushion of $350 billion, which gives both the country and [Finance] Minister Fernando Haddad a certain peace of mind,” said Lula at an event hosted by the e-commerce company Mercado Livre.
According to the most recent data from Brazil’s Central Bank, international reserves stood at $338.6 billion as of last Friday (Apr. 4). However, when including the approximately $17 billion auctioned by the Bank since last year—under agreements to be repurchased in the course of this year—the total rises to $355.6 billion.
Economic growth
At the event, Mercado Livre announced it would invest $5.7 billion in Brazil this year alone. According to President Lula, the company’s confidence in the country is well-founded, as the Brazilian economy is expected to continue outperforming forecasts in 2025, driven by recent government measures to boost credit and stimulate consumption.
“Now people are saying, ‘The economy is going to slow down, growth will fall.’ But I want to say here, in front of the Mercado Livre workers, that the Brazilian economy will surprise everyone. Those who keep talking about the so-called market and debating the economy don’t realize that microcredit is working—and that money is reaching the hands of thousands, even millions of people,” said Lula.
According to the president, the economic recovery has already been felt in recent years. He pointed to wage increases above inflation for several professional categories as an example. “The minimum wage has risen above inflation for two consecutive years. Employment has been growing steadily throughout the year. And credit is expanding rapidly across the country—very strongly,” he said.
Since Donald Trump announced tariffs on foreign products, stock markets in several countries have declined. According to President Lula, however, Brazil’s growth will not depend on external factors.
“It doesn’t depend on anyone—not the United States, not China, not Africa. It depends only on us, the Brazilian people,” he said.
“That’s all we ask—we’re not asking for much. We just want to be treated with respect and dignity, because that’s our right. After all, it’s you who produce this country’s wealth,” he said.
Mercado Livre
During his visit to the Mercado Livre Logistics Center, President Lula was accompanied by Fernando Yunes, senior vice president of Mercado Livre in Brazil, who outlined how the company’s $5.7 billion investment will be allocated this year. “This contribution will help us advance our logistics operations. The amount will be invested in Mercado Livre, Mercado Pago, and marketing,” Yunes said at the event.
Yunes also announced that the company will hire an additional 14,000 people this year, bringing its total workforce in Brazil to 50,000 by the end of the year.
Founded in 1999, Mercado Livre is Latin America’s leading e-commerce and financial services company, operating in 18 countries and employing over 84,000 people directly. Its Brazilian operation s for 54 percent of the company’s total business.
