Brazil replaces finance minister

Brazilian President Dilma Rousseff on Friday replaced Finance Minister Joaquim Levy with Planning and Budget Minister Nelson Barbosa, confirming rumors that have been circulating in Brasilia for the past week.H "The president thanks the dedication of minister Joaquim Levy, who had a fundamental role in tackling the economic crisis, and wishes him success in his future endeavors," the government said in an official statement.

However, it is widely believed that Levy quit due to disagreements with Rousseff over the fiscal policy.

Levy, who had been in his post for nearly a year, clashed repeatedly with Rousseff over budget cuts he sought to improve the country's fiscal health.

Barbosa, a close ally of Rousseff, has been one of the strongest opponents of the aggressive austerity drive led by Levy.

The changes in the economic team took place only a few days after Fitch Ratings downgraded Brazil to junk status. Fitch was the second of the three major credit rating agencies to downgrade Brazil's bonds. Standard and Poor's did the same in September, and Moody's is the only large agency which has yet to downgrade the country.

The Brazilian economy is mired in its worst recession in a quarter of a century. The country's 2016 budget is expected to have a deficit of a million U.S. dollars. Endi