# Lula approves spending cuts to meet Brazil's fiscal framework, says minister | Reuters

> Brazil's government approved spending cuts to meet its fiscal framework, according to a finance minister, after a sell-off in Brazilian assets over fiscal concerns. The real rose nearly 2% against the dollar on the news, after weakening about 13% year to date.

- Date: 2024-07-03 · published 2024-07-03T12:00:00.000Z
- Category: policy · region Brazil · magnitude medium
- Page: https://feedsoft.ai/events/9451-lula-approves-spending-cuts-to-meet-brazil-s-fiscal-framework-says-minister
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md)

## Why it matters

Credible spending cuts ease fears of fiscal slippage and support the real, which lowers the cost of dollar-priced Brazilian feed imports. A weaker real would otherwise raise the local cost of imported feed ingredients.

## Read by commodity

- USDBRL: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDBRL | 2024-07-10 | 5 | -4.8% | -3.6 | Government approval of spending cuts to meet the fiscal framework eased fiscal concerns, triggering a sentiment-driven real rally of nearly 2% that contributed to the BRL per USD decline. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2024-10-31 | [Brazilian government reaches agreement on spending cuts](https://feedsoft.ai/events/28083-brazilian-government-reaches-agreement-on-spending-cuts.md) | -1.3% | +3.8% |
| USDBRL | 2023-07-07 | [Brazil's lower house approves 'historic' tax reform bill](https://feedsoft.ai/events/35241-brazil-s-lower-house-approves-historic-tax-reform-bill.md) | -2.3% | -0.9% |
| USDBRL | 2022-10-03 | [Brazil girds for tight runoff vote after Bolsonaro's strong showing \| Reuters](https://feedsoft.ai/events/7986-brazil-girds-for-tight-runoff-vote-after-bolsonaro-s-strong-showing-reuters.md) | -3.4% | -2.9% |
| USDBRL | 2017-07-13 | [Ex-Brazil President Lula sentenced to nearly 10 years for corruption](https://feedsoft.ai/events/70170-ex-brazil-president-lula-sentenced-to-nearly-10-years-for-corruption.md) | -2.3% | -2.4% |
| USDBRL | 2025-06-25 | [Brazil’s Central Bank intervention in FX market raises questions](https://feedsoft.ai/events/24424-brazil-s-central-bank-intervention-in-fx-market-raises-questions.md) | -0.7% | +0.9% |

## Sources

- reuters.com: https://www.reuters.com/world/americas/brazils-lula-says-government-is-committed-fiscal-responsibility-2024-07-03/

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