Brazil Presidential Hopefuls Growing Moderate, Central Bank Says

Candidates expected to run in Brazil’s October presidential election are seeking alliances with centrist parties, likely helping to reduce volatility in the currency market

Towels for sale with the faces of president Jair Bolsonaro and presidential hopeful Luiz Inacio Lula da Silva.
By Martha Beck
January 22, 2022 | 02:27 PM
Reading time: <1 min.

Bloomberg — Candidates expected to run in Brazil’s October presidential election are seeking alliances with centrist parties, likely helping to reduce volatility in the currency market, according to central bank chief Roberto Campos Neto.

“We already have a very polarized situation and from what I read the candidates are trying to move to the center,” he said Thursday at a video conference organize by Banco Santander SA, adding that such a move is already having a positive impact on markets. “If we see high volatility, loss of liquidity, we are going to intervene” in the currency market.

Campos Neto’s remarks come one day after ex-President Luiz Inacio Lula da Silva, the front-runner in the race, said he would like to have Geraldo Alckmin, a centrist former governor for Sao Paulo, as his running mate.

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The Brazilian real strengthened 0.6% on Thursday, after closing the previous session with gains of more than 2% as investors considered that an alliance with centrist parties would reduce chances of radical policies by Lula.

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