The dollar started the Friday after Christmas higher in Brazil, after former President Jair Bolsonaro confirmed the day before his support for the candidacy of his son Flávio, PL senator, for president in 2026, while abroad the American currency showed slight gains against other strong currencies.
At 9:35 a.m., the spot dollar increased by 0.62%, to R$5.5633 on sale.
On B3, the dollar futures contract for January – currently Brazil’s most liquid – rose 0.66%, to R$5.5665.
On Thursday, before undergoing surgery in Brasilia, Bolsonaro confirmed in a handwritten letter that he had chosen Flávio as his candidate for next year’s election. On December 5, the news of the appointment had already been announced by Flávio himself, who since then has been working to get closer to the financial market.
However, among the agents, the opinion is that Flávio’s candidacy reduces the chances of the governor of São Paulo, Tarcísio de Freitas (Republicans), to enter the battle for the Planalto. Tarcísio is Faria Lima’s preferred name and is considered more viable than Flávio in a possible conflict with President Luiz Inácio Lula da Silva.
As a result, the dollar rose again against the real during this session on Friday, during which market participants also continued to move to send resources abroad.
To irrigate liquidity, the Central Bank will organize at 10:30 a.m. two online auctions (sale of dollars with commitment to repurchase) with a total value of 2 billion dollars. Coin market sales will be settled on December 30, while repurchases will take place on February 3, 2026 (auction A) and May 5, 2026 (auction B).
The auctions aim to meet increased demand for foreign exchange at the end of the year, when companies traditionally send resources abroad to pay dividends.
This year, in particular, remittances are being boosted by multinationals seeking to anticipate the January 2026 end of the income tax exemption on overseas remittances, which will be taxed at 10%, and the start of the 10% tax on amounts received above BRL 50,000 per month in dividends.
Earlier, the BC announced that credit concessions in Brazil fell by 6.6% in November compared to the previous month. The total credit stock increased by 0.9% during the period, reaching 6.972 billion reais.
Abroad, where several markets are closed, the dollar maintains gains against the yen, the euro and the pound sterling, but declines against real pairs like the Chilean peso and the Mexican peso.
At 9:34 a.m., the dollar index — which measures the performance of the American currency against a basket of six currencies — rose 0.11%, to 98.052.
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