The dollar rises and closes at 5,173 Brazilian riyals amid concerns about the tax base

a trade dollar It made a solid rise of 2.19% and ended Monday at R$5,173, amid concerns and uncertainty about the tax base. a Ibovespamain index of stock trading Brazilian (b 3) which includes the most actively traded companies, ended the trading session with a decrease of 2.38% at 115342.40 splatter. The trading volume on the Brazilian Stock Exchange amounted to 31,796,768,849 Brazilian Reals.

Today’s gains came after the US currency lost in the previous session on Friday (4) 1.36%, reaching 5.0524 Brazilian real, the lowest closing level since August 29 (5.0330). In the cumulative result for the past week, the period following Lula’s election victory, the dollar fell by 4.71%, the largest weekly decline since the period ending July 29 (-5.91%).

According to experts, after big moves of the US currency, there will be moments of correction in the opposite direction.

“Investors reacted positively to the election of former President Lula. Our assessment was that this event was indeed in asset prices, but the reaction was slightly better than we expected,” Genial Investimentos said in a note to clients. “However… the first signs of the Lula government’s future fiscal policy are not at all promising.”

The transitional team of the next government intends to establish the General Elections Commission to ensure an exceptional spending ceiling and to adapt next year’s budget to the promises of the Lula campaign, Such as keeping the R $ 600 Auxílio Brasil and the real adjustment to the minimum wage. The amounts included in the club have not yet been officially determined, but expectations are that they could exceed R$200 billion.

With such expenditures, “we will have an increase in the debt/GDP ratio, an increase in financial risks, and pressure on the exchange rate,” Genial assessed, who also pointed to the risks of increasing inflationary pressures in the country.

Lula takes part in meetings with his transition team on Monday, in Sao Paulo. According to sources heard by Reuters, the PT’s transition team has invited Bersio Arreda and Andre Lara Resende, the economists who helped design the real plan that stabilized the economy in the 1990s.

Meanwhile, abroad, the mood was more favorable to risky assets, amid hopes that China would ease restrictions on fighting Covid-19 and that the US midterm elections would split Congress between the two, the United States.

Dollar value published daily by newspapers including UOLrefers to the trade dollar (Learn more by clicking here). For those who travel and need to buy coins from exchange brokers, the value is much higher.

*With information from Reuters