Depreciation has been greater than that of the Argentine peso with annual inflation approaching 100% and the Russian ruble; Sovereign risk is 15 basis points higher than in January last year
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For the past week, the real has been the world’s most heavily traded currency devalued against the dollar. Compared to the main currency of the USthe decrease was 2.13% decline larger than recorded in Argentinawith a decrease of 1.19% in weight and in the Russia, currently at war, down 0.9%. The performance is a reaction to the President’s statements Luiz Inacio Lula da Silva (EN) for a possible increase in inflation targets in his government in a recent interview, the PT questioned the need independence Central Bank and proposed an increase in inflation target from 3.5% to 4.5%. The Chief Executive also signaled that the responsibilities Contrary to a campaign promise, social and tax issues must not be made dependent and the positioning fuels fear of the market again decompensation from public accounts. This Friday the 20th, the US currency appreciated by 0.72% and traded at R$ 5.21.
According to a survey conducted by Bloomberg, over the past five days the currencies of Colombia, Malaysia, Hungary, Romania, the Philippines, the Czech Republic, Chile, Indonesia, Thailand, South Korea and Taiwan have appreciated against the dollar, while Turkey, Poland, Russia, Hong Kong, Mexico, Peru, Argentina, China, South Africa and Brazil all fell in comparison. Commonly used to measure the trust In the economy, the fiveyear country risk also known as a credit default swap (CDS) hit 235 points. A year ago, country risk was lower at 220 basis points. However, in terms of foreign investment, foreign capital stayed in the country and as of January 18, a total of R$178.5 billion was invested on the São Paulo Stock Exchange (B3), while R$172.4 billion left the country, resulting in a positive balance of R$ 6.1 billion in investments.