Category: Public policy

Information related to political affairs that have an impact on Brazil’s economic development.

Copom meets this week on coronavirus expectations

Expecting the impact of the coronavirus on inflation, the Brazilian Central Bank’s Monetary Policy Committee (Copom) will hold, on Tuesday (17), the second meeting of the year to define the rate Selic, currently at 4.25% per year. The spread of the disease and the instability of the financial market in the last week have led to uncertainty about the fate of basic interest rates in the economy. At the beginning of last week, most of the financial institutions consulted by the Central Bank’s bulletin predicted the maintenance of the Selic, which is at the lowest level in history.

President Bolsonaro announces $ 1 bn to fight coronavirus in Brazil

President Jair Bolsonaro announced this afternoon (12) that he will allocate R$ 5 billion ($ 1 billion to fight the coronavirus in Brazil. He said he will sign a Provisional Measure tomorrow, Friday (13) authorizing the action. Bolsonaro cited the Brazilian stock market crash, which plunged 14.78% in the afternoon after two temporary stops, known as “circuit breakers”, and said that the country has a locked budget.

Almost half of the shares of Eucatex Company go to auction

Condemned of money laundering and imprisoned at home, former governor Paulo Maluf transferred funds that came out of public works and ended up in shares of his family’s company, Eucatex. An international collection action by the Municipality of São Paulo to recover about $230 million attributed to Paulo Maluf will result in the auction of almost half of the shares of Eucatex, a flooring and laminates company of the former governor’s family.

Wall St banks cut Brazil 2020 GDP growth forecast further below 2%

Bank of America Merrill Lynch cut its 2020 Brazilian economic growth outlook to 1.9% from 2.2%, and JP Morgan to 1.8% from 1.9%. Economy Minister Paulo Guedes and other officials have consistently said the government’s economic reforms and record low interest rates will deliver growth this year comfortably above 2%, with Guedes confident of 2.5%. JP Morgan said investment growth this year will now be lower at 5.0%, while exports will fall 0.5% compared with an earlier forecast of 0.5% expansion.

Real below 4.50 per dollar for first time, cenbank intervenes again

Real’s relentless decline continued on Thursday, falling below 4.50 per dollar for the first time ever. The Brazilian currency ended trading at new closing low of 4.4750 per dollar, meaning it has depreciated by more than 10% in just two months. Brazil’s central bank dipped into the currency derivatives market on Thursday for the fourth time this month, selling $1 billion of swaps contracts following Wednesday’s $500 million sale to slow or even reverse the real’s fall.

Brazil to allow for automatic approval of new agrochemicals

Brazil’s Agriculture Ministry will allow for agrochemicals awaiting regulatory approval to receive licenses automatically, potentially allowing new pesticides to reach market faster, according to new rules published in the government gazette with effect on April 1. If the ministry fails to review applications for new chemicals to be licensed within 60 days, the products will automatically be approved, although they will still need to receive separate approvals by the Health and Environment Ministries before going on the market.

Brazil confirms first coronavirus case in Latin America

A Brazilian government test has confirmed the first case of coronavirus in Latin America, after a Sao Paulo hospital flagged the possible infection of a 61-year-old who had visited Lombardy, in northern Italy. The diagnosis comes during Brazil’s carnival holiday, a peak time for domestic travel when millions of revellers throng major cities for boisterous street celebrations. Sao Paulo stock market, which has been closed since last week, is set to open at 1 p.m. local time. Brazilian shares in exchange-traded funds in New York have dropped nearly 6% this week.