Centrum Stosunków Międzynarodowych - 14-15 March 2016: Real currency and stock market in Brazil plunges amidst rumours of Lula da Silva becoming Minister

On 14 and 15 March 2016 the national currency of Brazil, the Real, plunged after the biggest newspaper of Brazil confirmed that former President Lula da Silva is trying to become Minister in the Cabinet of Dilma Rousseff. The currency dropped by 2% on Monday and by another 0,6% on Tuesday. Stock market values dropped over 7,4%. It is said Lula da Silva is trying to prevent being prosecuted and potentially jailed, which he wants to accomplish by receiving immunity that a Minister post would give.

Lula da Silva is alleged to have been responsible for corruption scandals linked to the state-owned oil giant Petrobras. If proven true that Lula would become Minister, it could further heat up the political and economic instability in the country. Last weekend millions of Brazilians went to the street to protest against current President Dilma Rousseff, calling for her impeachment.

For more on the Petrobras corruption scandals in Brazil and its dire economic situation click here and here.
For economic facts and figures on Brazil click here and here.