The new president also stepped in to clean up Brazilian politics as he put the country’s top anti-corruption figure, Sergio Moro, in charge of a Justice Ministry to battle graft and battle organized crime.

Furthermore, Bolsonaro is forging closer ties to the U.S. He met with U.S. Secretary of State Mike Pompeo, President Donald Trump’s envoy to Tuesday’s presidential inauguration, whom said the U.S. and Brazil will unite to defend democratic values.

“We have an opportunity to work alongside each other against authoritarian regimes,” Pompeo said Wednesday after discussing Venezuela with Brazil’s new Foreign Minister Ernesto Araujo.

Markets observers were optimistic that Bolsonaro’s economic cabinet, led by former investment banker Paulo Guedes, will push through reforms needed to cut down the country’s 180 billion reais, or $47.31 billion, deficit and restore confidence and growth to the ailing economy.

For more information on the Brazilian markets, visit our Brazil category.

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