BNDES reported that it approved R$ 66 million ($12 million) in loans to 3,770 companies. On average, the value of loans granted is R$ 17,500 ($ 3K) per company. The salary financing program is intended only for small and medium-sized companies, with annual revenues between R$ 360 thousand ($65 K) and R$ 10 million ($ 1.8 million).
Due to the covid-19 pandemic, the collection of federal revenues in Brazil fell by 3.32% in March, totalling $ 109.718 billion ($ 20 billion). The comparison is with the same month of 2019, discounting inflation. This is the lowest value for the month since March 2010, when R$ 105.717 billion ($ 19 billion) was collected.
The dollar hit new record highs on Wednesday, the price accelerated sharply near the end of trading, partly on an adjustment to the movement of global exchange but mainly by escalating interest cut bets on Brazil. The spot dollar rose 1.89%, to R$ 5.4094 on the sale, a nominal record for closing the session.
Lockdowns have ravaged the incomes of Brazil’s poor, throwing many of Brazil’s 38 million informal workers into unemployment. “We have more than 30 million informal workers in Brazil that were thrown into extreme poverty overnight because they can’t work during quarantine,” said Kiko Afonso, executive director of Citizens’ Action.
There is a near-unanimous belief among economists that the benefit for the unemployed, the self-employed, and casual workers is crucial to prevent the collapse of millions of families.
Brazil exported 9.16 million mt of soybeans in the first three weeks of April, up 28% month on month, according to a report by the Brazilian foreign trade department. Shipments from Brazil rose 14% year on year to 18 million mt in the first quarter of 2020, with almost 74% of them going to China, the trade department said. Analysts said Brazil could export over 12 million mt of soybeans in April.
The COVID-19 pandemic hit the Brazilian equity market hard, causing the worst monthly performance since September 1999. As measured by the S&P Brazil BMI, the Brazilian equity market lost 29.80% in March 2020. The S&P/B3 Low Volatility Index exceeded its benchmark by 640 bps during the same period. Moreover, the low volatility strategy presented superior cumulative and risk-adjusted returns over the 20-, 10-, and 5-year periods.
Brazil appears set to embark cautiously on unconventional monetary policy using small interventions to tackle dysfunction in bond markets, as it does with foreign exchange, but the severity of the crisis may ultimately force it to emulate the dramatic steps taken in the United States and Europe.
Brazil’s central bank president Roberto Campos Neto said that Latin America’s largest economy will begin to recover from the coronavirus crisis in the fourth quarter. Meanwhile, Presidente Jair Bolsonaro said that Brazil’s federal government will be expected to compensate states more than 100 billion reais (US$19.09 billion) in tax revenue lost due to lockdown policies that have negatively affected the economy, but he added that there is no room in the country’s budget to afford those costs.
Brazilian product keeps shipping to Kuwait amid the lockdown, said Brazil’s ambassador to Kuwait Norton Rapesta. Q1 2020 saw $56.96 million in goods exported from Brazil to Kuwait, with poultry comprising over 80% of that. The amount was up 20.8% from Q1 2019. In March alone, exports from […]