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Next Finance Minister, Fiscal Waiver In Focus

BRAZIL
  • Former Workers’ Party presidential candidate Fernando Haddad was chosen to represent President-elect Luiz Inacio Lula da Silva at a Febraban event, where BCB President Roberto Campos Neto will also be speaking.
    • Haddad’s presence is seen as another signal that he will be Lula’s choice to head the Finance Ministry, which is being touted as a less market friendly outcome.
  • Market participants are viewing the delay to a fiscal waiver amendment as a sign Congress is pushing back on the Workers’ Party attempt to significantly increase spending without any fiscal anchor, which has seen BRL stabilise in the past few sessions.

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