Five Brazilian Reais for each U.S. Dollar. The Brazilian currency touched its lowest nominal level ever in its 25-year history amid the global panic and market routs caused by the Covid-19 pandemic. But is the coronavirus the only factor at play?
Of course, in a moment of stress when investors are in panic mode, risk aversion takes over and it becomes hard to define what trends are caused by this hysteria, and what is down to local economic factors. At this point, it appears to be a mix of global panic with fears over Brazil’s growth and a bit of portfolio management, says Camila Abdelmalack, an economist at Veedha Investimentos.