The Head of the Central Bank in Brazil, Alexandre Tombini, has said that he may resign just days after millions of protestors took to the streets of Sao Paulo demanding that President Dilma Rousseff resigns. Rousseff faced an impeachment bid following allegations that she defrauded the fiscal books in 2014, but rather than step down she promoted former disgraced President Luiz Inácio Lula da Silva to a ministry position – angering millions of Brazilian citizens. Zerohedge.com reports: In his new position, he plans to revive the flagging economy with what the market assumes will be a series of leftist policies. That explains why the BRL retraced all of the gains it posted when Lula was first detained. Of course Lula himself denies that he would pursue policies that may harm the country’s fiscal position. According to Valor, Lula’s plans wouldn’t include a shift to the left. Nor would they include expanding credit. Or rate cuts. Or tapping Brazil’s FX reserves. Or social security reform. In short, it isn’t exactly clear what they would include but whatever the case, “investors see risk of government resorting to an economic policy shift in a last-ditch attempt to save President Rousseff’s mandate,” Luciano Rostagno, chief strategist at [...]