The Ibovespa index fell below 100,000 points in the last days and the dollar surpassed R $ 4,00. The current picture of volatility amid trade uncertainties and Bolsonaro's worsening in president and government approval polls.
Today, the dollar had risen to R$ 4.18 for the first time since September 2018. Currency buys gained momentum after Central Bank President Roberto Campos Neto said, according to Reuters, that the recent devaluation exchange rate is within the normal pattern.
Paradoxically, the financial market was one of the biggest supporters of Jair Bolsonaro's candidacy. Betting on a possible liberal agenda of the then-candidate. In coming to power, Bolsonaro put Paulo Guedes, a liberal in charge of the economy, but his government was largely unable to organize and lead the political debate around a reformist agenda. In fact, the statements of Bolsonaro and Guedes did more harm than good in assisting the approval work of the Social Security Reform. The main architect of this reform was the president of the Chamber of Deputies, Rodrigo Maia, who at various times collided with Bolsonaro and even Paulo Guedes.
Now, many analysts believe that the Bolsonaro government can repeat what happened to another liberal government in South America. Mauricio Macri's Argentina was the scene of a liberal who was unable to put into practice the reformist agenda at the right speed. Now, Macri, who has taken many populist measures in recent months, must lose the election to candidate to more developmental agenda.
To make matters worse, the publication of complaints against Mayor Rodrigo Maia helped increase the tension in the markets.
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