Exchange ends a sequence of falls and goes to R$5.21; Ibovespa returns to 126,000 points
O dollar and the Brazilian Stock Exchange closed higher on Thursday, 22, with investors analyzing the maintenance of monetary stimuli by the European Central Bank and the higher-than-expected increase in the number of requests for unemployment insurance in the United States. On the domestic agenda, attention remains focused on the exchange of seats in Brasília with the ministerial reform announced by Jair Bolsonaro (no party). The North American currency interrupted the sequence of two days of fall and closed with an advance of 0.41%, at R$ 5.213. The price reached a maximum of BRL 5.224, while the minimum was no more than BRL 5.169. The dollar ended the day with a drop of 0.76%, quoted at R$ 5.192. O Ibovespa, the benchmark of the B3, closed with a slight increase of 0.17%, at 126,146 points. The trading session this Wednesday, 20, closed with a high of 0.42%, at 125,929 points.
The European Central Bank confirmed this morning the maintenance of monetary stimuli to mitigate the effects of Covid-19 in the economy. The entity has pledged to buy another 1.85 trillion euros in bonds by March next year, in addition to keeping interest rates at minimum levels as the continent faces the resurgence of the pandemic with the spread of the Delta variant. The president of the monetary authority, Christine Lagarde, stated that there is room for stimulus until the damage caused by the health crisis is compensated. Across the Atlantic, the US Department of Labor announced that 419,000 people filed for unemployment insurance last week, up from a projection of 350,000. The news impacted Wall Street and reduced some of the optimism of investors with the positive disclosures of corporate balance sheets.
In the domestic scenario, investors are following the exchange of ministers announced by Bolsonaro the day before. Economy Minister Paulo Guedes stated that the dismemberment of the portfolio for the creation of the Ministry of Labor and Social Security represents “zero threat” to the progress of economic policy. “There is an internal reorganization taking place, without any threat to the heart of economic policy. Zero threat,” he said in a conversation with journalists. O federal government prepares the division of part of the Ministry of Economy to accommodate the current head of the General Secretariat of the Presidency of the Republic, Onyx Lorenzoni (DEM), which will leave the folder for the input of Luiz Eduardo Ramos, responsible for the Civil House. The retired general, in turn, will be replaced by the senator Ciro Nogueira (PP-PI). The negotiations are part of the ministerial reform announced by the president this Wednesday morning and which should be made official next Monday, 26. According to the minister, the change of parts is natural and is part of the federal government’s strategy to solidify the his parliamentary support, especially in the Senate.
Also on the national agenda, the rapporteur of the tax reform in the Chamber, deputy Celso Sabino (PSDB-PA) stated that the text should be put to vote in August, when Congress returns from the parliamentary recess. “For twenty years the best tax reform model has been discussed, and it has never gone beyond that. Now, this year, God willing, in August we are going to deliver the country’s tax reform through the Chamber,” he said. According to Sabino, the changes will impact the relinquishment of R$ 98 billion in federal collection from 2023 onwards. The taxation of dividends, in turn, should add R$ 40 billion extra to the public coffers. The amount of the difference will be recovered by cutting subsidies for companies, which currently cost the government BRL 300 billion, in addition to the amount saved with the end of super salaries, according to a project approved by the Chamber last week, plus exemption from payment of benefits for public agents.