Brazilian President Rousseff Suspended, Will Face Impeachment Trial; Says This Is A 'Coup'

After an all-night-long, heated (very heated) debate, the Brazilian Senate voted in favor of suspending President Dilma Rousseff on Thursday, giving way to an impeachment trial against her. The country’s elected President has been accused of funds from public banks to cover deficits in other areas, manipulating fiscal accounts in the process.

In a 55 to 22 vote, the Senate decided to proceed with the impeachment process, obliging Rousseff to step down from her position for as long as 180 days, while the trial takes place. Now, her only hope is more than one third of the Senate votes against her conviction.

In the meantime, Vice-President Michel Temer has taken over as acting President of Brazil, and could permanently replace Rousseff until the end of 2018 if she were convicted. Temer has already presented his staff, which includes a new, conservative Finance Minister, Henrique Meirelles, and a new Foreign Minister, Jose Serra, and a new Planning Minister, Romero Juca, who is currently being investigated for his involvement in the Petroleo Brasileiro SA Petrobras (ADR) PBR PBR corruption scandal. Notably, there are no women included in his 21-persons cabinet.

While experts have argued that the process has been completely constitutional, many have cast doubt on the real motivations behind it, classifying it as a coup d’état. And, Rousseff agrees with the latter view.

Related Link: Brazil From The Ground, Part 2: What Millennials Think Of The Crisis

On Thursday, the President addressed the nation via TV and assured that, while she may have made some mistakes, she certainly “did not violate budgetary laws.” During the strong-worded discourse, she said the impeachment is "fraudulent" and described it as "a coup."

"What is at stake is respect for the ballot box, the sovereign will of the Brazilian people and the constitution,” Rousseff stated. ““The struggle for democracy doesn’t have an end date… It’s a permanent fight that requires our constant dedication. It’s a fight that can be won, and it is one we will win,” she concluded.

Brazil ETFs Market Vectors Brazil Small Cap ETF BRF and iShares MSCI Brazil Index (ETF) EWZ were trading up on Thursday afternoon.

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.