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The departure of Justice Minister Sergio Moro tells investors that the economic crisis caused by the coronavirus pandemic will be more severe and prolonged in Brazil than in the rest of the world, say financial market professionals. For this reason, the stock market is already falling more sharply than abroad, separated from the main stock indexes abroad, while the dollar accelerates appreciation against the real.
According to analysts and managers, the rise in the dollar and the fall in the stock market show that local and foreign investors have less confidence in the recovery of the Brazilian economy due to lack of governance.
Here are some comments:
The impact is bad for the market. Moro’s departure shows a lack of governance at a critical moment, at a time when the government needs to build trust among investors to attract capital. Brazil may have a much stronger crisis than the rest of the world.
Rodrigo Knudsen, manager of Vitreo’s resource manager
The departure of a popular second minister in a short time increases investor uncertainties and will affect investment prospects.
Ulisses Nehmi, CEO of Resource Manager Sparta
Moro was one of the pillars of the government. His departure takes place at an absolutely inappropriate moment and will shake the structures.
Alvaro Bandeira, chief economist at the Modalmais digital bank
Doubts about staying in Guedes
For the Genial Investimentos application platform strategist, Filipe Villegas, the market is now questioning the permanence of the Minister of Economy, Paulo Guedes, responsible for forwarding the reforms necessary for Brazil to attract investors.
Could Paulo Guedes be the next to be sent? All this creates doubts, fear and because of that, we have instability. The investor, who was already cautious due to the coronavirus crisis, will be even more so.
Filipe Villegas
