Brazil is a very important mining nation, and it has a USD SWAP line making it a +SWAP Line Nation.
Brazil is rich in iron ore, gold, copper as well as oil.
The nation was rocked by COVID-19 and citizens are unhappy with the government.
Current Brazilian President Jair Bolsonaro has faced all sorts of issues within his cabinet and across the economy.
The far-right leader is now hospitalized due to complications from a stabbing in 2018. The nation’s previous President (2003-2010) Luiz Inacio Lula da Silva or “Lula” has made a strong comeback in the polls and has now overtaken Bolsonaro by a wide margin.
A Lula win would be beneficial for the Brazilian economy as many global leaders dislike Bolsonaro.
If you forced me to pick today which way Brazil will go, I would say Lula takes the election. This is something I am looking into further as some of our KRO portfolio companies have assets in Brazil. Lula during his last tenure was very pro-mining."
I think this political situation will be good for BRV.
