A Supreme Court judge ordered an investigation into potential insider trading in Brazil’s currency markets around the announcement of US tariffs on Brazilian goods.
Justice Alexandre de Moraes issued the order on Monday in response to a request from Brazil’s attorney general based on local media reports of significant foreign exchange transactions shortly before and after the official tariffs announcement on July 9. The attorney general said the currency movements suggested “possible use of privileged information by individuals or legal entities.”
The real began to weaken around 1:30pm ET on July 9, after President Donald Trump said Brazil hadn’t been good to the US and warned tariffs were imminent. Three hours later, he followed up with a letter to President Luiz Inacio Lula da Silva announcing a 50% levy on Brazilian exports, causing the currency to decline further.
The insider trading allegations have also become part of an inquiry into whether Eduardo Bolsonaro, a son of the former conservative president, has used the threat of tariffs to pressure the court. Since moving to the US in March, Eduardo has been meeting US administration officials in Washington, trying to persuade them to impose sanctions on members of the Brazilian judiciary.
Moraes is overseeing all cases related to ex-President Jair Bolsonaro and his son at the top court. The position has put him in collision course with Trump, who has demanded Brazilian authorities drop charges against him over an alleged coup attempt.
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 Assistance from Vinícius Andrade and Augusto Decker.
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