Dollar Exceeds R$ 5.20; Stock Exchange Loss almost Equal to that of 2008

Ibovespa accumulates 42% drop with coronavirus crisis

São Paulo

The dollar closed at R$ 5.2010 on Wednesday, up 3.97%, according to the CMA. Tourism is selling at R$ 5.37. In some exchange offices, the currency is sold over R $ 5.45.

In 2020, the dollar rises 29.6% against the real, which made it R$ 1.187 more expensive.

The strong appreciation of the currency in the session was contained by interventions by the Central Bank (BC). The council held three cash auctions over the course of the day, which totaled $ 860 million. US$ 2 billion was also sold at a line auction - sale with a repurchase commitment.

Ibovespa - File Photo. (Foto: Camila Oliveira/FramePhoto/Folhapress) - 5416

The trading session was marked by strong risk aversion due to investor fears about a global recession caused by measures to combat the coronavirus.

With a 10.34% drop on Wednesday, the Brazilian stock exchange is similar to 2008, the year of the last financial crisis. The Ibovespa, the largest stock index on the Brazilian stock exchange, accumulated a 42% drop in 2020. In 2008, the index fell 41.22%, in nominal terms (not counting inflation).

Translated by Kiratiana Freelon

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