# Brazilian government reaches agreement on spending cuts

> Brazil's government economic team and the Chief of Staff's Office agreed on measures to cut federal spending, to be introduced as a constitutional amendment proposal. Specific details, timelines and fiscal impact have not been disclosed and are under legal review.

- Date: 2024-10-31 · published 2024-10-31T12:00:00.000Z
- Category: policy · region Brazil · magnitude medium
- Page: https://feedsoft.ai/events/28083-brazilian-government-reaches-agreement-on-spending-cuts
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md)

## Why it matters

The agreement eases fiscal risk premiums that had pushed the real to multi-year lows. A firmer real can lift Brazilian export offer prices for soy, corn and meal, tightening the global feed price outlook.

## Read by commodity

- USDBRL: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2024-07-03 | [Lula approves spending cuts to meet Brazil's fiscal framework, says minister \| Reuters](https://feedsoft.ai/events/9451-lula-approves-spending-cuts-to-meet-brazil-s-fiscal-framework-says-minister.md) | -4.8% | -0.2% |
| USDBRL | 2019-01-03 | [Brazil markets soar as new government vows to shrink state](https://feedsoft.ai/events/12357-brazil-markets-soar-as-new-government-vows-to-shrink-state.md) | -3.4% | -4.1% |
| USDBRL | 2024-12-20 | [Markets stabilize as Central Bank acts, House OKs spending review](https://feedsoft.ai/events/27147-markets-stabilize-as-central-bank-acts-house-oks-spending-review.md) | +1.0% | -1.9% |
| USDBRL | 2019-01-03 | [Bolsonaro effect on Brazilian markets and currency — MercoPress](https://feedsoft.ai/events/12358-bolsonaro-effect-on-brazilian-markets-and-currency-mercopress.md) | -3.4% | -4.1% |
| USDBRL | 2017-11-28 | [Softer Pension Proposal Leads to Brazilian Stock Slip \| Chief Investment Officer](https://feedsoft.ai/events/11658-softer-pension-proposal-leads-to-brazilian-stock-slip-chief-investment-officer.md) | +0.8% | +2.9% |

## Sources

- valorinternational.globo.com: https://valorinternational.globo.com/economy/news/2024/10/31/brazilian-government-reaches-agreement-on-spending-cuts.ghtml

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.