Brazil’s Uncertain Political Backdrop Weighs on BRL: Analysts
(Bloomberg) -- The delay of the vote in Brazil’s Senate on a measure that aims to free up 30% of the govt budget is weighing on local assets, analysts say.
- Lack of quorum to vote on the proposal highlights the difficulties the govt faces with potential reforms, Camila Abdelmalack, chief economist at CM Capital Markets, says in a phone interview
- “If it is getting a hard time to approve simpler measures, what will happen when it has to go through very necessary but unpopular adjustments like pension reform?”
- “The market recognizes a certain fiscal lenience and the truce with the government is narrowing,” Eduardo Velho, chief economist at INVX Global Partners, says
- BCB’s daily auctions of FX reverse swaps are also helping to temper BRL’s ability to follow other EMFX gains, Jayro Rezende, treasurer at Banco da China, says
- NOTE: BRL little changed after dropping earlier, underperforming most EMFX; DI rates rise
Alert:
HALISTER1Source: BFW (Bloomberg First Word)
People Camila Abdelmalack (Cm Capital Markets Corretora De Cambio Titulo E Valores Mobiliarios Ltda)
Eduardo Velho (Invx Global Partners)
Jayro Rezende (Bank of China Ltd)
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