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Bolsonaro Seen Extending COVID Aid

BRAZIL
  • Sourced reports suggest Brazilian President Bolsonaro is considering extending recent COVID aid packages to include a new cash handout to low income families in another step seen combating his low popularity rating. The move is seen as a bridging measure to cover the gap before a more permanent program can be approved. Economy minister Guedes has so far not passed a solution in Congress to approve an expansion of Bolsa Familia that doesn't clash with public expenditure rules.
  • Budget balance data is the highlight Tuesday, with July figures expected to show a deficit of BRL 16bln. Unemployment rate data is seen improving to 14.4% from 14.6%. Data is due at 0930 local time (1330BST/0730ET).
  • The BCB's regular FX swap operation is due at 1130 local, with auctions of the 2024, 2028 and 2040 linkers also on the docket.
  • The Special Secretary to the Economy Ministry holds a press conference on Brazil's 2022 budget at 1500 local time (1800BST/1400ET).
  • USD/BRL finished the Monday session at the lowest levels since August 11th, with the pair creeping closer to support at the 5.1679 50-dma.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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