One of the main problems faced by Lula da Silva, shortly after becoming president of Brazil, was the stock market, which fell for two consecutive days and produced a significant increase in the dollar that reached its highest point in six months. That is why Fernando Haddad called to discuss economic reforms.
The reason given by the government of the neighboring nation is that from the financial market they realized “what was happening in Brazil in 2022”. “They believed that there was a climate with the economy going to a good port, but it fell apart with the presentation of the real numbers,” Haddad denounced. and remarked that Jair Bolsonaro hid the true situation in which they found themselves with the aim of being able to win the elections.
The politician affirmed that the fall in the stock market is a reaction of the financial markets to the “legacy” that the previous government left hidden, for which reason he rules out that it is a speculative attack against the current president of Brazil. “The interest rate went from 2% to 13.75%, a legacy of 55,000 million dollars,” he said.
However, analysts indicate that some of Lula’s statements did not go down well with the financial sector, specifically those related to the change in the fiscal anchor. from the neighboring country and the extension of the exemption from federal fuel taxes.
Agreement between Brazil and Argentina
Daniel Scioli, Argentine ambassador to Brazilaffirmed that he met with the new Minister of Foreign Affairs Mauro Vieira, as well as with Fernando Haddad with the aim of improving bilateral relations and working on the understandings between the two countries in view of Lula’s first official visit at the end of January.
According to what the Argentine embassy told Télam, the objective of these meetings is to be able to reach a “deep integration pact between Argentina and Brazil that presidents Lula and Fernández could sign during the next visit of the Brazilian president to Argentina”. In addition, they will seek to agree on “a foreign trade financing scheme with 180-day compensation to increase trade with our neighbors, export more and take care of the reserves of both countries, within the framework of the local currency system.”