A Supreme Court judge in Brazil has ordered a probe into potential insider trading within the country’s currency markets, coinciding with the announcement of US tariffs on local goods.In response to a request from Brazil’s attorney general, based on local media reports of significant forex transactions before and after the official tariff announcement on July 9, Justice Alexandre de Moraes issued the order on Monday.
According to the Brazilian Attorney General, currency movements suggested “possible use of privileged information by individuals or legal entities.”
Brazil’s currency Real, began to weaken around 1:30 PM Eastern Time on July 9, after US President Donald Trump highlighted that Brazil had not been good to the US, stating that tariffs were imminent. Three hours later, he followed up with a 50% tariff letter addressed to Brazil’s President Luiz Inacio Lula da Silva. The letter sent the currency tumbling further down.These insider trading allegations have now become a part of the inquiry into whether Eduardo Bolsonaro, son of former President Jair Bolsonaro, used these tariff threats to pressure the court. Eduardo is said to have moved to the US in March, and has since been persuading the Trump administration to impose sanctions on the Brazilian judiciary.
According to the Brazilian Attorney General, currency movements suggested “possible use of privileged information by individuals or legal entities.”
Brazil’s currency Real, began to weaken around 1:30 PM Eastern Time on July 9, after US President Donald Trump highlighted that Brazil had not been good to the US, stating that tariffs were imminent. Three hours later, he followed up with a 50% tariff letter addressed to Brazil’s President Luiz Inacio Lula da Silva. The letter sent the currency tumbling further down.These insider trading allegations have now become a part of the inquiry into whether Eduardo Bolsonaro, son of former President Jair Bolsonaro, used these tariff threats to pressure the court. Eduardo is said to have moved to the US in March, and has since been persuading the Trump administration to impose sanctions on the Brazilian judiciary.
US President Donald Trump had cited the treatment to Bolsonaro as one of the factors behind the tariff threat. Justice Moraes, who issued the probe orders, is also overseeing all the cases related to Bolsonaro and his son. On the other hand, Trump has demanded that Brazilian authorities drop charges against the former President.
Instead, Moraes on Friday ordered Bolsonaro to wear an ankle monitor and barred him from using social media, among other restrictions. On Monday, he issued a follow-up order clarifying that interviews by the former president may not be retransmitted on social media.
(With Inputs From Agencies.)
