Brazil Currency Drops As President Agrees To Replace Embattled Finance Minister

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

Comments

[Dr. Engali]

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

[J S Bach]

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

[Colonel Klink]

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

[Usura]

http://www.fourwinds10.net/siterun_data/government/banking_and_taxation_...

Down to only 3:

Iran;

North Korea; and,

Cuba

[Glass Seagull]

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

[Anonymous User]

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

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

[PTR]

You forgot the NSFW tag.

[wulf]

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

[Berspankme]

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]

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

Replacing the finance minister is a good first step.

[hcho3]

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

But, who cares about average citizens. 

[Rodders75]

Nem tou aí

[MaxThrust]

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

Max