ADVERTISING

Latest Photo Galleries

Signs of Tension Signs of Tension

Published on 04/11/2016

Rio: a City in Metamorphosis Rio: a City in Metamorphosis

Published on 11/19/2015

Brazilian Markets

18h19

Bovespa

-0,02% 103.775

16h43

Gold

0,00% 117

17h00

Dollar

+0,37% 3,7710

16h30

Euro

+0,49% 2,65250

ADVERTISING

Brazil's Economy: The Risk of Default and The Dollar Rate Return to Pre-Crisis Levels

02/16/2017 - 10h42

Advertising

DANIELLE BRANT
TÁSSIA KASTNER
FROM SÃO PAULO

A favorable global scenario for raw materials and the evaluation that the Brazilian government will undertake the reforms necessary to rebalance government spending and receipts have brought down the Dollar and the perception of country risk to levels of mid-2015.

In July of that year, the Dilma government registered a record budget deficit and admitted that it would not achieve its fiscal targets.

Two months later, Brazil lost one of the labels of a good credit risk.

On Wednesday (15), Brazilian CDS, a kind of insurance against default by a country, returned to their levels of May 2015.

Signs of recuperation in the world economy have helped to reduce the level of perceived risk globally and have elevated commodity prices.

The level of the Dollar, the currency that investors seek for protection, has fallen to R$ 3,06, the lowest level since June of 2015.

Translated by LLOYD HARDER

Read the article in the original language

You have been successfully subscribed. Thanks!

Close

Are you interested in news from Brazil?

Subscribe to our English language newsletter, delivered to your inbox every working day, and keep up-to-date with the most important news from Brazil.

Cancel