Real Collapses To Fresh Low After Brazil Central Bank Intervention Fails Again
Dollar rates rise and Brazilian borrowers of US dollars are scrambling to collect dollars, less is traded in the domestic currency. Inflationary to them deflationary to us, short term. Real soon this shows up in rapid trade deficit for us and downward, backward revisions of GDP. We get get unexpected interest charges.
They will say, too low for too long.
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