Dollar rises and government expands credit for businesses.

The market closes with the dollar rising and the focus on negotiations with the US.

The dollar closed up 0.10% this Thursday (13), quoted at R$ 5.2975, while the Ibovespa, the main index of the Brazilian stock exchange, was operating in decline in the last hour of trading. The international scenario returned to the focus of investors after the end of the US government shutdown and in view of new diplomatic movements between Brazil and the United States.

Business negotiations in Niagara

Brazilian Foreign Minister Mauro Vieira met with U.S. Secretary of State Marco Rubio in Niagara Falls, on the sidelines of the G7 summit. The meeting served to discuss the progress of tariff negotiations between the two countries. Brazil submitted a negotiation proposal to the United States on November 4th, following a virtual meeting between the technical teams of both countries.

Government expands Sovereign Brazil Plan

In response to the impacts of American tariffs, the government expanded access to the Sovereign Brazil Plan. The National Monetary Council (CMN) approved, this Thursday (13), changes in emergency financing totaling R$ 30 billion, operated by the National Bank for Economic and Social Development (BNDES).

More flexible criteria

The new rules broaden access to credit and include suppliers of exporting companies among the beneficiaries. The revenue criterion has been expanded, with a minimum impact of 1% of gross revenue for eligibility. By the beginning of November, the plan had resulted in 571 credit operations, benefiting 126 large companies and 391 medium-sized companies.

The Vice President and Minister of Development, Industry, Trade and Services (MDIC), Geraldo Alckmin, stated that the government is working on two fronts: diplomatic negotiation and direct support to the productive sector.

Retail trade with mixed signals

The Monthly Trade Survey (PMC) released by IBGE this Thursday (13) showed varied performance of Brazilian retail in September. Regionally, 15 of the 27 federative units registered a drop, with Maranhão (-2.2%) and Roraima (-2.0%) standing out. Among the increases, Tocantins (3.2%) and Amapá (2.9%) led.

Photo by John McArthur on Unsplash