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Brazil expected to approve postal service privatization on Wednesday- sources

By Tatiana Bautzer and Lisandra Paraguassu

By Tatiana Bautzer and Lisandra Paraguassu

SAO PAULO/BRASILIA, Aug 20 (Reuters) - Brazil's government is expected to approve on Wednesday an initial step to privatize the country's postal system, two people with knowledge of the matter said on Tuesday.

The sources, who asked for anonymity to disclose private discussions, said the board of a government privatization committee will approve the inclusion of the postal service in the government divestiture program.

Brazilian President Jair Bolsonaro fired in June the postal system's Chief Executive Officer, Juarez Cunha, after he criticized privatization. General Floriano Peixoto was appointed to replace him.

Brazil's postal system, which has 105,000 employees, posted a 161 million reais ($40 million) profit last year. ($1 = 4.0420 reais) (Reporting by Tatiana Bautzer and Lisandra Paraguassu; Editing by Cynthia Osterman)