Brazil exporters Vale SA (NYSE: VALE), Suzano SA, and others happen to be rather aggressive in their push to get banks to pay them a sum of 3.8 billion, accusing them of currency manipulation. So the Brazilian antitrust watchdog Cade swings into action with immediate effect, considering the veracity of the matter in question. First, it wants to investigate whether or not it is true that the exporters are accusing the banks of currency manipulation.
The latest scandal hits a huge percentage of exporters
Reports point to the incidence as one of the most recent developments touching the global foreign exchange segment. It is a serious scandal, and that is considering that banks around the globe have been compelled to pay billions of dollars in penalties.
Back in 2013, widespread allegations of currency manipulation in the foreign exchange market took center stage in global news. One of the most vocal sources happened to be the Brazilian newspaper Valor Economico which highlighted a class action involving $1 = 5.0437 reais.
Exporters’ association AEB has been rather vocal about the plight of the Brazilian exporters, pointing out an accusing finger to the banks’ influences. As a result, it has been rather vigilant, filing the first lawsuit back in 2018. Most of the details happened to be pretty clear, but it failed to stipulate the damages.
Losses incurred
The body specifies the losses, outlining that the Brazilian exporters lost 107.4 billion reais following the major scandal reported in 2010 and 2011. However, AEB’s compensation calculations have been rather elaborate, providing a figure of 20% as the representative figure for the affected Brazilian exporters.
The big names mentioned in the scandal include Banco Santander Brasil SA, Itau Unibanco Holding SA, Citigroup and BNP Paribas, and HSBC.
Citi asserts that all its activities have been in total conformity with the rules. Santander knows nothing about the class action, whereas Bradesco declined to comment on the matter.