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Government Re-Affirm Commitment to Privatization

BRAZIL
  • The government have re-affirmed their commitment to privatization, despite numerous delays, according to Estadao, with the government looking to attract as much as BRL20bln in outside investment. The plans will now extend to public ports, with the Port of Santo to go up for auction in the second half of the year.
  • In further internal disruptions, senior budget and planning civil servants have threatened to strike and even resign from senior positions in protest against pay packets, with as many as 1,200 workers potentially striking.
  • President Bolsonaro remains in hospital, following his admission for an intestinal obstruction. Latest reports suggest the obstruction has now passed, and surgery has been ruled out for now.
  • Further FX swap auctions are scheduled, with the bank rolling over 17,000 contracts due in March. The operation starts at 1130 local time/1430GMT.
  • The Brazilian Treasury are set to auction 2025, 2028 SELIC-linked LFTs as well as 2025, 2032 and 2045 inflation linkers.
  • Elsewhere, the BCB governor Campos Neto is on annual leave, so expect little in terms of central bank speak.

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