RIO DE JANEIRO, BRAZIL – Brazil’s biggest exporters, including Vale SA and Suzano SA, are demanding R$19 billion (US$3.77 billion) from 19 banks in a class action which accuses them of manipulating foreign exchange rates, newspaper Valor Economico reported on Tuesday.
Exporter association AEB, which filed the class action, said Brazilian exporters took losses of R$107.4 billion with the alleged manipulation of currencies by banks, according to the report. AEB’s compensation calculations took into consideration that the association represents 20% of all Brazilian exporters.
Among the banks included in the class action are Itau Unibanco Holding SA, Banco Santander Brasil SA, HSBC (acquired by Banco Bradesco SA), Citigroup, and BNP Paribas.
Citi declined to comment, adding its conduct complies with rules. Other banks did not immediately respond to a Reuters request for comments on the matter.
Compensations demanded by Brazilian exporters is another development of a global foreign exchange scandal that has led to billions of dollars in penalties for banks worldwide. Allegations of widespread manipulation in the spot foreign exchange market were first reported in 2013.
Source: Reuters/Valor economico