Brazil Currency Drops As President Agrees To Replace Embattled Finance Minister

Tyler Durden's picture

Just a day after Dilma Rousseff agreed to approve a 2016 budget bill that preserves the primary surplus target unchanged at BRL43.8b, a win for Joaquim Levy who was against including BRL20b in rebates w/ the PAC program, local newspaper Valor Economico reports that Rousseff has agreed to remove the embattled FinMin. 

From Bloomberg:

  • Brazil Finance Minister Joaquim Levy’s departure is certain, local newspaper Valor Economico reports citing sources it didn’t name.
  • President Dilma Rousseff has not yet decided on replacement, Valor reports 
  • Former central bank President Henrique Meirelles is strongest candidate
  • If Meirelles gets position, he will not have complete freedom on economic policy, Valor reports

And the reaction in the BRL:

Here's a bit more from Bloomberg out earlier today:

  • Rousseff sided w/ Levy and authorized representatives on the joint budget committee to reinforce the 2016 goal: Folha
    • Levy has said privately that the market can accept the shortfall this year if govt ensures robust and reliable surplus for 2016: Folha
    • People close to Levy said that if he was defeated in discussion, he could’ve taken that as opportunity to leave govt, newspaper says
    • Presidential aides said Levy has not presented his resignation, but admit that he has complained to friends and shows he’s tired of constant attacks, according to Folha
  • Lula was in Brasilia yday talking to politicians to argue for the govt to replace Levy w/ former BCB Governor Henrique Meirelles: Folha
    • Lula thinks impeachment talks could resurface if govt doesn’t change economic policy, according to Folha and Valor
  • No one in Rousseff’s inner circle believes she will make a quick decision on FinMin: Folha

And just hours later, we get the denial:

  • ROUSSEFF SAID NOT TO HAVE INTENTION TO REMOVE LEVY FROM POST
  • ROUSSEFF SAID NOT TO BE CONSIDERING MEIRELLES TO REPLACE LEVY

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Dr. Engali's picture

Yeah, replace the finance minister, that will fix everything.

J S Bach's picture

"Levy"!  Good grief... is there a place on earth where they DON'T control the purse strings?

Colonel Klink's picture

Those filthy Irish Catholics are into everything, I'm tellin'ya!

Glass Seagull's picture

 

 

The austerity man just left the building.  Now, everybody samba!!

Anonymous User's picture
Anonymous User (not verified) Nov 13, 2015 10:48 AM

I guess there will be a surge in brazilians doing this:

 

http://www.thepornster.net/video/468/

 

 

 

PTR's picture

You forgot the NSFW tag.

wulf's picture

Good news for (brazilian) gold owners. It seems the only way we can get good news is when USD rises.

Berspankme's picture

Never mind the corruption, the shitty raw materials biz or the socialist free shit, we will fire a guy. Its fixed. Whew that was close

Kirk2NCC1701's picture

What he needs to do, is to replace the Petrodollar. 

Replacing the finance minister is a good first step.

hcho3's picture

Brazil has to hold on until next Year. The olympic is still not here yet.... 

But, who cares about average citizens. 

MaxThrust's picture

Fire Levy and hire another member of the Tribe. Yeah that will fix it.

Max