RIO DE JANEIRO, BRAZIL – The main stock index of the São Paulo stock exchange, B3, operates in sharp decline on Tuesday (19), contrary to the indices abroad, because of concerns about the country’s accounts to announce the value of R$400 for the beneficiaries of the new Brazil Aid (Auxilio Brasil).
At closing, the Ibovespa fell 3.28%, to 110,672 points. The dollar rose 1.33% to R$5.59.
On Monday, the stock market closed with a drop of 0.19%, at 114,428 points. With today’s drop, the stock market is down 3.86%.
Today, with the effects of the concern over the funding of a Brazil Aid at R$400, well above all previous forecasts, the dollar also hit a new high, closing above R$ 5.59.
On the domestic scene, the Ibovespa plunged on concerns over persistent inflation and discussions over funding sources for the federal government’s new social program, Auxílio Brasil.
According to specialists, news about a new proposal for the arrangement of social benefits, including Auxílio Brasil and two complementary installments of the emergency aid paid, one inside and one outside the spending ceiling, weigh on business.
The financial market’s estimate for inflation this year rose to 8.69%. The forecast for the GDP, on the other hand, fell again, to 5.01%, according to the Central Bank’s latest Focus survey.