Day: March 20, 2020

Brazilian Central Bank and Fed sign $ 60 billion deal

The Brazilian Central Bank (BC) and the Federal Reserve (Fed – central bank of the United States) will maintain, for at least six months, a liquidity swap agreement in US dollars. The amount is $ 60 billion and will expand the dollar supply in the domestic market. According to the BC, the money will be used to “increase the funds available for liquidity provision operations in dollars”.

Car industry will close plants in Brazil

Vehicle industries have already announced that they will close factories at the end of the month due to the pandemic of the coronavirus and the market demand. The three main companies that have already confirmed collective holidays and together employ almost 50,000 employees. In addition to paralysing the production of five Brazilian factories indefinitely (in São Paulo, Rio Grande do Sul and Santa Catarina), General Motors suspended the investment of R$ 10 billion ($ 2 billion) planned for the period from 2020 to 2024.

Ibovespa rose 2.15% driven by Petrobras

The Ibovespa rose 2.15% and closed the trading session on Thursday (19) at 68,331.80 points. The increase was mainly driven by Petrobras’ shares, which blast more than 11%, driven by the strong appreciation of the oil barrel, which exceeded 20%. Also, a series of news contributed to the greater optimism in the session, such as the discovery of a potential medicine against the coronavirus and the aid of $ 60 billion offered by the Federal Reserve (FED) to the Central Bank (BC).

Agribusiness associations ask for guarantees to maintain port logistics

A letter signed by nearly 50 organisations representing the agribusiness chain was addressed to the federal government requesting support to ensure the functioning of the national port logistics through the coronavirus crisis. In the document, the associations ask for special attention to the Port of Santos because, in the event of strike in Santos, the entities stated that there would be “high chances for this action to trigger a chain process in the other ports, destroying jobs and dropping the country in a domino effect whose losses are incalculable at this moment “.

Economy Ministry announces $ 2 billion for workers

The federal government decided to compensate part of the income of workers who may have their wages reduced due to the coronavirus crisis. The measure aims to help workers who may have their income cut in half at this time of economic slowdown. The payment must be released for three or four months and can benefit up to 11 million people. Therefore, it should cost R$ 10 billion ($2 billion) to the Workers’ Support Fund (FAT).