Brazil to investigate suspected FX insider trading on US tariffs
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The new probe is part of the investigation into the use of international tariffs to coerce Brazil’s court system.
PHOTO: REUTERS
BRASILIA - Brazil’s Supreme Court Justice Alexandre de Moraes authorised an investigation into the alleged use of privileged information on foreign exchange transactions before the announcement of the 50 per cent US tariff on all Brazilian imports in July, according to a July 21 court filing.
On July 19, the solicitor general’s office, known as AGU, had requested Supreme Court authorisation to look into the trades after a news report suggested a significant volume of Brazilian reals were sold in anticipation of the tariff announcement, which could suggest insider trading.
The news report was based on a chart posted by Mr Spencer T. Hakimian, founder at New York-based hedge fund Tolou Capital Management, that showed how the Brazilian real moved on July 9, when Mr Trump announced a 50 per cent tariff on imports from Brazil. He told Reuters on July 10 that he had no further data or information to back his comments. Mr Tolou manages US$82 million in a global macro hedge fund strategy.
“I am very happy to see Brazil looking into something suspicious. I wish the US would be responsible enough to do the same,” Mr Hakimian said, after learning about the probe.
The new probe is part of the investigation into the use of international tariffs to coerce Brazil’s court system to drop the case against former Brazilian President Jair Bolsonaro for plotting a coup after he lost the 2022 presidential elections.
Brazil’s attorney general is investigating Eduardo Bolsonaro, the son of the former president, over allegations that he courted interference by Mr Trump. The crisis also prompted Brazil’s Supreme Court to issue new restrictive measures against the former president, such as wearing an electronic ankle monitor. REUTERS
