Brazilian ex-president Lula da Silva joins government cabinet, report says

Brazilian ex-President Lula da Silva was named as the government's chief of staff in a controversial move which came amid a judicial inquiry into alleged political kick-backs and recent scandals surrounding state-owned oil giant Petrobras.

José Guimarães, the governing Workers' Party leader in Brazil's lower house of Congress 'tweeted' news of the appointment on Wednesday afternoon, Bloomberg reported.

Lula has been charged by a court for concealing ownership of a beachfront apartment.

Opposition lawmakers in Brazil have argued that Lula's acceptance of the post would be tantamount to an admission of guilt as he would then be able to avoid standing trial, unless the Supreme Court stepped in.

Da Silva was president of Brazil, South America's largest economy and the world's seventh biggest in terms of gross domestic product in 2014, between 1 January 2003 to 2011, presiding over the long stretch of economic prosperity coinciding in no small part with China's commodities boom, which had now turned to bust.

As of 14:43GMT the US dollar was strengthening by 1.75% to 3.8326 against the Brazilian real.