MercoPress. South Atlantic News Agency
Brazil: US dollar pierces R$ 6 barrier
Brazil's Central Bank (BCB) did not intervene in the exchange rate The US dollar closed for the first time above the psychological R$ 6 barrier on another turbulent day in Brazil's markets, Agencia Brasil reported. The local scene continued to reverberate after the spending cut package announced earlier this week by Finance Minister Fernando Haddad, also impacting the stock exchange scene during the day.
The commercial dollar closed Friday at R$6.001, up just 0.19%, after reaching R$ 6.11 at around 10.15 am. It eventually went back down after statements from Haddad and Senate Speaker Rodrigo Pacheco.
Friday's was the highest rate since the creation of the real, representing a 3.21% rise this week and 3.8% in November. The commercial euro ended the day up 0.41% at R$6.348. Brazil's Central Bank (BCB) did not intervene in the exchange rate.
In the stock market, the day was marked by a recovery. After a turbulent morning, B3's Ibovespa index closed at 125,668 points, up 0.85%. At around 11.30 a.m., the indicator fell by 0.53% but reversed the movement and began to rise in the afternoon.
Despite Friday's advance, the stock market lost 2.46% for the week, its worst weekly performance since mid-September. In November, the Ibovespa shrank by 2.9%.
The dollar reached zero after Rodrigo Pacheco made raising the income tax exemption to R$5,000 conditional on the tax situation. Later, at an event organized by the Brazilian Federation of Banks (Febraban), Haddad said that the government could review measures in the tax package sent to Congress, if necessary.
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Posted 6 days ago 0Simply the result of the government's incompetence......which has created and allowed an atmoshere of judicial insecurity to take over, overspending (the federal debt has passed R$ 9 trillion, reaching 81% of the GDP), an “ajuste fiscal” (a cut in government expenses) which is a joke - it has reduced essential investments in Education and Public Health, and social benefits, however going nowhere near the exorbitant salaries, privileges and benefits of Federal servants in the 3 branches of government.....not one of the 39 (many useless) Ministries has been eliminated, so everything in Brasília carries on as always, while Brazil goes to the dogs.
Seems to be the beginning of a repeat performance of Dilma's disatrous administration that lead to the biggest recession in Brazil (2014/15) over the last 100 years....
They still haven't learned (and never will) that you won't get different results by doing the same thing over and over again...
Once again, time for building. My neighbors in Brazil think I overpay the mason and his helper. Albeit, at these prices getting skilled labor for a day at the price of inferior help in the US for an hour, I can't help myself. Need it or not, we'll remodel the upstairs of the house in Mossoro.
Posted 6 days ago 0Please log in or register (it’s free!) to comment. Login with Facebook