Category: Macroeconomy/Finance

Information regarding Brazil’s finance sector and the country’s macroeconomy.

BNDES lent $12 mm to finance company salaries

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).

Dollar shoots the record above R$ 5.40 with bet on Selic

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.

Brazil soybean exports up 28% in April so far

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.

Brazilian equity market lost 29.80% in March

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.

Brazilian economy will begin to recover in the 4th quarter: Central Bank

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.