The devaluation of the Brazilian real continues and one dollar is now equivalent to 5.8 reais. The currency of the neighboring country lost a lot of value last year but since Donald Trump won the trend has deepened.
The devaluation of the Brazilian real does not seem to stop and one dollar is already equivalent to almost 5.8 reais. Donald Trump’s victory in the US elections caused the dollar index to strengthen, which contributed to the devaluation of emerging currencies.
The most depreciated currencies this Monday are the mexican peso (-1.8%), the brazilian real (-1.2%), and the chilean peso (-1.2%). Among relevant currencies, the euro devalued 0.6% to 1.0650 dollars per euro, its worst level since April 23.
In the case of the Brazilian currency, it depreciated 13.3% in the last year and, thus, While last year US$100 was equivalent to 503 reais, Today that amount is equal to 570 reais..
This is a very strong fall in a short time. And that makes Today, traveling to Brazil, for Argentines, with a peso that appreciates against the dollar, is cheaper.
Lula worried about the devaluation of the real
The president of Brazil, Luiz Inácio Lula da Silva, promised in an interview broadcast late Sunday to defeat the “speculative greed” of the financial markets, and He urged Congress to set an example by cutting spending, while the Government prepares new fiscal measures.
The president told the station RedeTV! “I beat them once and I will beat them again,” after the nervousness of the markets over the sustainability of Brazilian public finances would cause the local currency to fall and interest rate futures will skyrocket.
The Brazilian real recently fell to its lowest level against the dollar since March 2021, increasing pressure on the Government to quickly introduce spending cuts to demonstrate its commitment to fiscal discipline.
“I am in a very, very serious discussion process with the Government… We cannot continue playing, every time we have to cut expenses, on the shoulders of the people most in need”said Lula.
Source: Ambito
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