Banco do Brasil Fights False “Swift ban” Rumors Tied to Bolsonaro Allies

Banco do Brasil has asked Brazil’s Attorney General’s Office to act against online rumors pushed by allies of former president Jair Bolsonaro. The state-owned bank says these messages could damage public trust and destabilize the country’s financial system.

The rumors centered on a video posted by Congressman Eduardo Bolsonaro. He claimed Banco do Brasil would be cut off from international markets, face U.S. sanctions, and go bankrupt.

Other figures, including Congressman Gustavo Gayer, urged people to withdraw their money, raising fears of a bank run. Banco do Brasil publicly rejected the claims.

It stressed that it follows Brazilian law, the rules of over 20 countries where it operates, and global banking standards. It also highlighted that the talk of a ban from SWIFT, the Belgian-based international payment network, is false.

The United States cannot unilaterally cut off a Brazilian bank from SWIFT; only European authorities can impose such measures.

The rumors gained traction after the U.S. Treasury sanctioned Supreme Court Justice Alexandre de Moraes under the Global Magnitsky Act, which targets individuals accused of corruption or rights abuses.

Congressman Eduardo Bolsonaro linked those sanctions to Banco do Brasil because the bank manages accounts for the Supreme Court. Brazil’s Supreme Court quickly pushed back.

Justice Flávio Dino ruled that foreign sanctions and orders have no automatic effect inside Brazil and must be approved by domestic authorities. This ruling directly challenged claims that Banco do Brasil faced immediate international penalties.

Markets nonetheless reacted. On August 19, Banco do Brasil shares fell six percent, part of a 42 billion reais loss across the banking sector that day. The fall reflected investor anxiety over the conflict between U.S. sanctions policy and Brazil’s legal sovereignty.

Banco do Brasil Americas, the bank’s U.S. affiliate, also denied claims of a bank run. It confirmed that withdrawals were normal and operations continued without disruption.

Finance Minister Fernando Haddad said the bank is under political attack by Bolsonaro’s camp and pointed to rising defaults in agribusiness loans, though he provided no data.

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This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief

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