SAO PAULO: The Brazilian real lost 1.75 percent against the dollar Wednesday on the year’s final day of trading in Sao Paulo, bringing the cumulative loss for 2015 to 48.3 percent.
Brazilians wanting to buy dollars must cough up nearly 4 reais per greenback.
The real’s plunge reflects the multiple woes plaguing the South American giant, which is struggling with recession, inflation, rising unemployment and a deteriorating political situation.
President Dilma Rousseff, who has implemented a tough austerity program aimed at reducing the budget deficit, is facing the threat of impeachment.
“The political, economic and budget crisis was not resolved,” Joao Paulo de Gracia Correa, an analyst with brokerage SLW, told EFE. “The market protects itself against this situation and the currency depreciates.”
The real will continue to decline against the dollar next year unless the government “takes measures that calm the market,” Correa said, expressing a view shared by the majority of private sector analysts.
There is a silver lining, however, as the cheaper real boosts exports and makes Brazil an even more attractive destination for international tourists.
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