Day: May 13, 2020

Dollar reaches new historic high at R$ 5.87

The Brazilian foreign exchange market suffered a turnaround in the final stretch of the trading session, culminating in a new record for the dollar, due to a new episode of the political turmoil that hit the federal government. The American currency closed up 0.86%, at R$ 5.8691, after touching R$ 5.8860 in the worst moment of tension in the market.

BC lends $ 3 bn with financial guarantee to 27 banks

The Central Bank announced that it approved the release of R$ 17.5 billion ($ 3 billion) in loans to 27 financial institutions related to the first tranche of the Special Temporary Liquidity Line by issuing a Guaranteed Financial Bill, an initiative launched in March to support banks amidst to the coronavirus crisis. The following tranches will run until the end of 2020, reaching, in aggregate, 100% of the institutions’ reference assets.

Brazilian pork exports increase 19% in April

Brazilian pork exports totalled 72,800 tonnes in April, up 19% over the same period last year, the Brazilian Animal Protein Association (ABPA) said. The volume of products shipped (fresh and processed) generated revenues of $ 165.2 million last month, an increase of almost 32% compared to April 2019, the entity added.

XP Inc.’s net income jumps 89% in the first quarter, to $ 68 mm

XP Inc.’s net income jumped 89% in the first quarter of 2020, compared to the same period last year, to R$ 398 million ($ 68 million). Over the previous quarter, the increase was 2%. The company’s adjusted net profit was R$ 415 million ($ 71 million) – an increase of 147% over the amount seen a year earlier, but a decrease of 1% in relation to the fourth quarter of 2019.

Federal revenue falls 30% in April

Federal tax revenue fell about 30% in April compared to the same period in 2019. The drop in revenues is caused by the lower activity of the economy, due to the closing of trade and industries, and also by the postponement in the collection of taxes promoted by the government to mitigate the effect suffered by companies. There will also be a reduction of R$ 7 billion ($ 1.2 billion) in IOF for credit operations.