Brazil Central Bank: Will Monitor Markets Thursday to Ensure Proper Functioning

Features Dow Jones Newswires

SÃO PAULO--Brazil's central bank said it will monitor financial markets on Thursday to ensure their proper functioning, after a local newspaper reported President Michel Temer encouraged a businessman to continue bribing a jailed former congressman to buy the lawmaker's silence.

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Mr. Temer has denied any wrongdoing.

The central bank said the monitoring is in response to recent news reports, without providing more specific information.

O Globo newspaper said Wednesday night that Joesley Batista, chairman of meatpacking giant JBS SA, recorded a conversation with Mr. Temer in which the president indicated Mr. Batista should continue to pay the former legislator, Eduardo Cunha. Mr. Batista and Mr. Cunha's lawyer both declined to comment.

Mr. Cunha was convicted this year of money laundering and corruption as part of the Operation Car Wash anticorruption probe. O Globo reported that Mr. Batista told President Temer about regular payments to Mr. Cunha, and the president responded that Mr. Batista should continue what he was doing.

Write to Jeffrey T. Lewis at jeffrey.lewis@wsj.com

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(END) Dow Jones Newswires

May 18, 2017 08:03 ET (12:03 GMT)