Euromoney caught up with Arminio Fraga in his hometown, Rio
de Janeiro, where he spends his weekends. It was August - the
middle of winter - but even so the breeze coming through the open
windows from the Atlantic did little to cool his corner office at
the central bank building. Come summertime, a lack of air
conditioning is likely to be unbearable; in Brasilia, the capital,
where the central bank is based, it will be even worse.
And Fraga is starting to feel the heat, as worries grow that
Argentina's problems may be transmitted to its northern neighbour.
Weighed down by worries about the US and world economy, a growing
regional crisis, a slowing domestic economy with electricity
rationing and uncertainty over forthcoming elections, the Brazilian
real is weakening and that has pushed up interest rates.
Even in rolled-up shirtsleeves, chinos and brown loafers, Fraga
was much more the...
