Good morning! Today, the crash of the Brazilian currency may not be over yet. Planning minister is talking up South American integration. And fires out of control in the Amazon, not just the Pantanal.
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Brazilian currency crash to deepen
What a difference six months can make. At the start of the year, markets expected the Brazilian currency, the real, to strengthen and end 2024 below the psychological threshold of BRL 5 — more precisely, at BRL 4.95. Since the turn of the year, however, the real has lost 17 percent against the greenback, reaching its weakest point since January 2022.
Context. Despite promising numbers posted by the country’s economy in the first half of 2024 — especially above-expected Q1 growth and the resilience of the job market — analysts and investors are skeptical about whether the Luiz Inácio Lula da Silva administration will meet its zero-deficit fiscal targets this year and stop the public debt from ballooning.
- At the same time, the global scenario is not helping — from geopolitical…
