The dollar recorded the largest decline in two weeks and rose to 5.668 Brazilian reals; bag falls too

The dollar ended Wednesday (22) down 1.24%, quoted at 5.668 Brazilian real for sale. With this second consecutive low – the largest in two weeks, since Dec. 8 (-1.49%) – the US currency closed the day again below R$5.70 after two sessions, with investors more willing to take risks and betting on less safe assets.

the IbovespaThe main index of the Brazilian Stock Exchange (b 3), also ended the day down by 0.24%, reaching 10,543.72 points. In the week, the index accumulates losses of 1.83%, largely due to Reported a decline of more than 2% on Monday (20).

Even with today’s results, the dollar is still 0.57% higher against the real in December, while the Ibovespa is up 3.27%. But in 2021, the situation is better for the currency adding 9.23% gain, and worse for the index which is down 11.57% since the beginning of the year.

The dollar value published by daily newspapers including UOL, back to dollar trading. For those who travel and need to buy coins from exchange brokers, the value is much higher.

Budget in focus

In the domestic environment, and specifically in the financial scenario – one of the main foreign exchange clues in 2021 – investors focused on the 2022 budget, Yesterday the National Congress approved. In the House there were 358 votes in favor and 97 against. In the Senate, the score was 51 to 20, with no abstentions.

The report submitted by Federal Representative Hugo Leal (PSD-RJ) allocates R$4.9 billion for campaigning next year. The parliamentarians also included a forecast of R$1.7 billion for an increase in the salaries of federal police officers, a requirement of the president Jair Bolsonaro (PL), referring to the strategic category of elections.

At the same time, the opinion states that after approval of constitutional amendments that changed the form of payment first, a fiscal margin of R$113.1 billion will be created for next year, a value higher than the federal government’s estimate of R$106 billion.

After extending the spending ceiling and not paying court orders, the 2022 budget seems credible, but it will not be implemented without objection.
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(with Estadão and Reuters content)