The agreement that limited the duration of the Proposed Amendment to the Constitution (PEC) of the Transition for one year was well received in the financial market. The dollar fell to the lowest value in almost two weeks and the stock market rose sharply, closing at the highest level in 11 days.
The commercial dollar ended this Tuesday (20) sold at R$5.207, down R$0.102 (-1.93%). The price opened slightly higher, but began to retreat during the morning. At the low of the day, around 1:15 pm, it reached R$ 5.18.
With today’s performance, the US currency reached the lowest price since the last day 7 and practically zeroed the high in December. In 2022, the currency accumulates a drop of 6.62%.
In the stock market, the day was also marked by euphoria. The B3 Ibovespa index closed at 106,864 points, up 2.03%. Driven by shares of retailers and state-owned companies, the indicator reached the highest level since the last 9th.
This Tuesday, the National Congress and the allied base of the elected government reached an agreement to reduce the duration of the Transition PEC from two years to one year. R$ 145 billion for social programs, R$ 23 billion for investments based on excess revenue and R$ 24.6 billion for abandoned PIS/Pasep Fund accounts will also be excluded from the spending ceiling.
In exchange, the R$ 19.4 billion of the rapporteur’s amendments, associated with the secret budget, will be divided equally, with R$ 9.7 billion redistributed to the ministries and R$ 9.7 billion destined to the individual taxable amendments.
The partial dehydration of the Transition PEC was welcomed for reducing the impact on public spending. In addition, high interest rates in Brazil attracted foreign capital. Abroad, the dollar fell about 0.5% against the world’s main currencies, at a more contained pace than today’s fall against the real.
* With information from Reuters
