Latin America remains in focus this week for Canadian exporters. At the end of last week, Brazil’s congress approved the world’s largest quantitative easing program. Recently, Brazil’s government has come under criticism for its response to the health crisis, with a number of senior politicians leaving their positions in disagreement with the country’s leader and approach to the crisis. As we wrote last week, it was widely reported that business leaders were becoming increasingly anxious and concerned about the country’s economic future, specifically in currency and fiscal positions.
The stimulus package has provided Brazil’s central bank with the far-ranging powers to buy public and private assets, including government and corporate bonds. This action will be monitored closely by other Latin American countries, who may choose to follow suite, e.g. Chile and Colombia.
Brazil remains a good country for Canadian exporters, however with recent events and broader impact on the region, exporters should remain vigilant and continue to seek advice. Check back for more updates throughout the week.