Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

Brazil's central bank employees go on strike, as its chief vacations in Miami

Published 04/01/2022, 06:18 PM
Updated 04/01/2022, 06:21 PM
© Reuters. FILE PHOTO: People walk in front the Central Bank headquarters building in Brasilia, Brazil March 22, 2022. REUTERS/Adriano Machado/File Photo

By Marcela Ayres

BRASILIA (Reuters) - Brazil's central bank employees began an indefinite strike for a wage increase on Friday, threatening the stability of the wildly popular Pix instant payment system and the publication of data releases.

With Brazilian inflation reaching double digits, public sector strikes have become more common in recent months, disrupting the government's day-to-day operations and causing headaches for President Jair Bolsonaro as he seeks re-election in October.

The strike is taking place while central bank head Roberto Campos Neto is in Miami on a pre-scheduled vacation.

Brazil's central bank employees voted on Monday for an indefinite strike starting on April 1, citing unanswered wage increase demands.

In a statement, Fabio Faiad, president of the workers' union SINAL, said he expected 60%-70% of workers to adhere to the strike.

The central bank said on Friday that its Focus Survey of economists will not be published on the expected date next week, nor will data on foreign exchange flows and Brazilian savings accounts. It did not say when publication will resume.

In his statement on Friday, Faiad also bemoaned the timing of Campos Neto's vacation.

"Sadly, during such an important moment, the president of the central bank went on vacation to Miami, which does not help at all for us to find a solution to this crisis," Faiad said.

Campos Neto, who has been on vacation since Thursday, met virtually with workers' representatives on Tuesday, but Faiad said the meeting was "a fiasco," with no proposals.

The central bank did not immediately respond to a request for comment.

© Reuters. FILE PHOTO: People walk in front the Central Bank headquarters building in Brasilia, Brazil March 22, 2022. REUTERS/Adriano Machado/File Photo

The central bank's Pix payment system has been a huge success in Brazil, and has won international plaudits. The system is ​​free of charge for individuals and allows instant payments and transfers.

Just 15 months after its launch, it has been used by 114 million individuals in Brazil - 67% of the adult population - moving 6.7 trillion reais ($1.36 trillion) and recently surpassing the level of credit and debit cards.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.