Temer’s Show of Strength in BZ Policy Favors BRL, Analysts Say
(Bloomberg) -- Local assets such as BRL are buoyed by last night’s agreement between Temer and regional governors to delay payments of states’ debt, seen as a show of power by the acting president, analysts say.
- BRL also follows global risk-on mood ahead of Brexit vote
- Temer got a deal with governors in which they will support fiscal spending cap approval in exchange for the debt relief; this is positive as chances for fiscal reforms increase, Ricardo Gomes da Silva, FX trading head at brokerage Correparti, says
- “In political terms, that was another win for Temer,” the consultancy firm MCM writes in an e-mailed report
- Biggest difference between Temer’s govt and that of suspended President Rousseff is his political ability, former FinMin Delfim Netto writes in Valor
- NOTE: Yday’s deal follows prior Temer wins in Congress such as the approval of nomination of new central-banker Goldfajn in the Senate, and the bill giving the government flexibility to manage the budget, which passed in Lower House
Alert:
HALISTER1Source: BFW (Bloomberg First Word)
People Antonio Netto (Federative Republic of Brazil)
Jason Temerowski (Balyasny Asset Management LP)
Michel Temer (Federative Republic of Brazil)
Ricardo Gomes Da Silva (Correparti Corretora De Cambio)
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