It’s doubtful that the Brazilian Real will become part of a new reserve currency anytime soon. Brazil is yet another example of the Zimbabwe solution in action.
The real has weakened almost 22% against the US dollar this year, the worst among 31 major currencies tracked by Bloomberg. Losses accelerated in November after a long-awaited fiscal package underwhelmed investors. Not even a historic intervention by the central bank — spending some $20 billion in reserves in two weeks — has been able to reverse the rout.
I think TruDough is in the running!
Who could not have predicted that … once a Fascist Communist State was installed in Brazil?
Spending massive amounts of reserves brought about a lowering in the value of the currency, what genius didn’t see that coming?
Oh No!
Anyway
Do we really need a reserve currency?
Keep your eye on how things develop in Brazil. Their most populated (and decaying) area shares a border with Argentina. As Argentina starts to prosper, the obvious comparisons are going to be made by Brazilians peering “over the fence.” They are NOT going to like what they see as a less tyrannical country builds and builds on their successes while their own continues to freefall into malaise. Luiz Inácio Lula da Silva might want to increase his security in the near future. He’s going to need it as his “constituents” learn a very important lesson on the free market and that just because their media calls “Luna” center left, his actions are unmistakably socialism.
Short version: Get ready for some Brazilian Nationalism on the horizon.
Nothing like growing the spread of the favelas.
The Left keeps doing the same shit to their economies and act all surprised at the results. I think they only act surprised. No one else is.
BRICs never made a lot of sense to begin with, because unlike the US$, you can’t be dropped anywhere in the world and still be able to use it.
Additionally, why would the other countries want to tie themselves to a currency that is aggressively manipulated like the Yuan/RMB is.
Like anyone is going to denominate an international contract that takes longer than a week to complete in anything other than US dollars.
Was this like the nearly 25% collapse of the Euro against the USD beyween 2022 and 2023?