Brazil Finance minister cancels trip to Europe amid pressure to present fiscal measures

This content was published on November 3, 2024 - 15:30

1 minute

SAO PAULO (Reuters) – Brazil Finance Minister Fernando Haddad canceled a trip to Europe this week, the ministry said in a statement on Sunday, amid pressure from market participants for the government to present spending-cut measures that had been promised.

In the statement, the Finance ministry said Haddad will now remain in Brasilia during the week at the request of President Luiz Inacio Lula da Silva.

The minister will be focused on “domestic subjects,” the ministry added, without elaborating.

On Friday, the U.S. dollar hit its strongest closing level against the Brazilian real in spot trading since May 2020, as investors were jittery due to a lack of details on the local fiscal measures and ahead of the U.S. presidential election on Tuesday.

Government officials have said they would present the measures at some point after last weekend’s municipal elections, but they did not give a deadline.

Local newspaper Folha de S. Paulo reported on Friday that the government was unlikely to present the spending-cut measures this week, as Haddad would be in Europe.

Haddad had been expected to visit Europe from Nov. 4-9, although his specific schedule had not been confirmed by the government.

His travel plans will be resumed in due course, the ministry said.