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Brazilian Investors Withdraw as Incarcerated Ex-President, Lula, Released

Brazil is going through a crazy moment that is reflecting on its international market

This Friday, on November 8th, the ex-president of Brazil, Lula, walked free from jail after the Supreme Court defends that convicted people will only be arrested “if they have exhausted their appeal options” as BBC put on their news. 

If you do not know the judgment in Brazil occurs in three instances and whether the accused were convicted before the third instance he could go to jail. Well, who has voted to this new decision about exhausting the appeal options claimed that the previous decision violates Brazil’s constitution as it says on Article 5, LIV that no one shall be deprived of his liberty or his property without due process of law. 

Lula was sentenced in the second instance and got arrested on April 7th of 2018 on corruption charges. He was accused of being involved in what I call the greatest Brazilian scandal: Operation Car Wash, by accepting bribery from contractors (Passive Corruption) in the form of money and a three-floor-apartment in a beach area in São Paulo, in Guarujá municipality. He was also accused of money laundry as he used the money received as briber to refurbish the apartment that has even received an elevator. He was sentenced to serve 12 years and 1 month in prison with the onset in a closed regime.

Now he is out of prison and some things began to be reflected by this act of justice. Talking about our economy, on the same day, the Ibovespa index (the most important indicator of the average performance of share prices traded on Brazilian stock exchange) fell 1.78% and the dollar appreciated 1.83% and ended the day at 4.168 reais (the Brazilian currency). In this same week, we got frustrated about the pre-salt auction and it is being noticed as a reflection of legal uncertainty as well as political and institutional instability in general and it makes the foreign investors see Brazil with not so positive eyes.

Let’s wait for the scenes from the next episode!



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Brazilian Investors Withdraw as Incarcerated Ex-President, Lula, Released

by Jennifer Rocha time to read: 1 min