Free Trial

Top Court Ruling May Hamper Reform Progress

BRAZIL

Brazil's top court ruled out the possibility of re-election for the current heads of congress in a move that raises questions about the future of the government's reform agenda.

  • Both Davi Alcolumbre (Senate President) and Rodrigo Maia (Lower House Speaker) will not be allowed to seek additional terms.
  • The debate surrounding this issue has been well covered, but the ruling was definitely not expected.
  • Given the influence of these positions, the reform agenda will certainly be side-lined until late Feb-early March when the positions have been newly elected.
  • For reference, Brazil swap rates declined significantly last week (around 50bps), in line with bolstered sentiment, fiscal rhetoric from Bolsonaro and BRL gains.
USDBRL is opening up 0.75% at 5.1685.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.