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Last year the reformist head of China’s central bank convinced his Communist party bosses to give market forces a bigger say in setting the renminbi’s daily “reference rate” against the US dollar. In return, Zhou Xiaochuan assured his more conservative party colleagues that the redback would finally secure coveted recognition as an official reserve currency […]

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Capital Markets

Mnuchin expected to be Trump’s Treasury secretary

Donald Trump has chosen Steven Mnuchin as his Treasury secretary, US media outlets reported on Tuesday, positioning the former Goldman Sachs banker to be the latest Wall Street veteran to receive a top administration post. Mr Mnuchin chairs both Dune Capital Management and Dune Entertainment Partners and has been a longtime business associate of Mr […]

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Financial system more vulnerable after Trump victory, says BoE

The US election outcome has “reinforced existing vulnerabilities” in the financial system, the Bank of England has warned, adding that the outlook for financial stability in the UK remains challenging. The BoE said on Wednesday that vulnerabilities that were already considered “elevated” have worsened since its last report on financial stability in July, in the […]

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China stock market unfazed by falling renminbi

China’s renminbi slump has companies and individuals alike scrambling to move capital overseas, but it has not damped the enthusiasm of China’s equity investors. The Shanghai Composite, which tracks stocks on the mainland’s biggest exchange, has been gradually rising since May. That is the opposite of what happened in August 2015 after China’s surprise renminbi […]

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Hard-hit online lender CAN Capital makes executive changes

The biggest online lender to small businesses in the US has pulled down the shutters and put its top managers on a leave of absence, in the latest blow to an industry grappling with mounting fears over credit quality. Atlanta-based CAN Capital said on Tuesday that it had replaced a trio of senior executives, after […]

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Categorized | Currencies

Brazilian real sinks as prosecutors consider investigating president

Posted on November 25, 2016

Brazil’s currency slumped more than 2 per cent this morning after reports that the country’s public prosecutor is considering an investigation into President Michel Temer in connection with a corruption case.

At publication time, the real was 1.96 per cent weaker, to 3.4550 per dollar.

Former minister Marcelo Calero told police the president put pressure on him to end a dispute with another cabinet member who was trying to get a permit for an apartment building in a protected area of his hometown, according to Reuters.

Mr Calero resigned from his post as culture minister last week, citing “disagreement with some members of the government”.

Mr Temer took over as president in August after the impeachment of Dilma Roussef, whose premiership was dogged by a string of corruption scandals.

Chart: Bloomberg