LatinNews Daily - 24 March 2020

* Roberto Campos Neto, the president of Brazil’s central bank (BCB), has given assurances that the BCB is “absolutely calm and the national financial system will function perfectly well. We are here to provide whatever form of incentive is necessary”, in the face of the economic shockwaves caused by the coronavirus (Covid-19) pandemic. In a video interview, Campos Neto acknowledged that financial turbulence and investors’ migration to safer assets were a challenge for Brazil, and that businesses would now be scrambling for liquidity to face the coming economic crisis. Campos Neto gave reassurances on the BCB’s capacity to guarantee liquidity, noting that the various measures announced by the BCB so far will increase the national financial system’s liquidity by R$1.2trn (US$233bn). The latest measures announced on 23 March include a reduction in banks’ compulsory deposits with the BCB and credit lines to financial institutions.

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