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Foreign Exchange

Brazil: Covid-19’s waves begin to wash up on LatAm’s shores

The economic fallout from the virus is beginning to impact regional currencies and growth forecasts.

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Brazil is on the other side of the world from China, the epicentre of the coronavirus, but it has become one of the countries most directly impacted by the disease – which is a huge headache for the Central Bank of Brazil (BCB) and finance ministry.

The Brazilian real has been accelerating its depreciation trend in recent days – on Wednesday the dollar closed at $4.58, a fall of 1.5% in the day’s session, and by Thursday the real had fallen 13.9% in 2020.

The fresh falls came despite the BCB’s announcement it would conduct a fresh intervention in the FX market, selling swaps valued at $1 billion.




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