Former President Bolsonaro Endorses Son Flavio for 2026 Brazil Presidential Election, Impacting Financial Markets

Former Brazilian President Jair Bolsonaro has indicated his support for his eldest son, Senator Flavio Bolsonaro, as a presidential candidate in the upcoming 2026 election, according to his political party's statement on Friday. This announcement triggered notable reactions in local financial markets.

Valdemar Costa Neto, who heads Bolsonaro's right-wing Liberal Party, confirmed to Reuters that he had received information from the senator about the former president's endorsement of his candidacy.

CNN Brasil reported that Bolsonaro offered his support to his eldest son during a visit to federal police offices in Brasilia, where he is currently serving his sentence for coup conspiracy charges. This information came from unnamed sources close to the situation.

The announcement regarding Bolsonaro's electoral plans negatively impacted Brazilian markets on Friday, with the national currency declining approximately 2% against the US dollar while the Bovespa benchmark stock index dropped by 3%.

Many investors had anticipated that Bolsonaro would endorse a more market-friendly candidate with executive leadership experience, such as Sao Paulo Governor Tarcisio de Freitas, his former minister, to challenge the leftist President Luiz Inacio Lula da Silva in the next election cycle.

"The market perceives Flavio as a less formidable candidate than Tarcisio in a potential contest against Lula," explained Laís Costa, an analyst at Empiricus Research.

It's worth noting that Bolsonaro himself has been prohibited from seeking public office since June 2023, following a ruling by Brazil's federal electoral court (TSE) that condemned his behavior during the 2022 election campaign.

In September, Bolsonaro received a sentence of 27 years and three months imprisonment for orchestrating a coup attempt after his defeat in the 2022 presidential election to Lula.