HomeFinancial MarketsBrazil's Real Rises Following Tax Reform

Brazil’s Real Rises Following Tax Reform

Brazil’s real surged on Friday after the country’s newly-introduced tax reform bill was passed by the lower house of parliament on Friday. The currency was also boosted by a weakening dollar following the latest U.S. jobs report.

The real advanced by 1.1%, thereby driving a 0.6% jump for the MSCI index for Latam currencies. This rise comes as the tax reform bill is set to be introduced to the Senate for further voting.

“The approval of a long-awaited tax reform bill by Brazil’s lower house of congress suggests that hopes for growth-friendly reforms during Lula’s term aren’t dead,” Kimberley Sperrfechter, emerging markets economist at Capital Economics, observed.

Part of President Luiz Inacio Lula da Silva’s plan to boost Brazil’s economic growth, the reforms are aimed at simplifying the nation’s complex consumption tax laws.

Despite its recent uptick, the real is still headed for a weekly loss of 1.6%; its largest downfall in the last 11 weeks.

Netflix’s Resilience Praised by Wall Street Analysts After Strong Q1 Earnings

Streaming giant Netflix continues to be championed by Wall Street analysts, who view the company as “resilient” in a tough economic environment after strong...

Fed to “Wait for Greater Clarity” Before Making Policy Adjustment Says Chair Jerome Powell

The Federal Reserve will wait to see the impact of recent sweeping tariffs on the U.S. economy before considering making policy adjustments, according to...

Oil Prices Will Decline Through 2026 According to Goldman Sachs

Oil prices will drop further this year, with the trend spilling over to 2026, according to Goldman Sachs. The investment bank forecasts that increased...