Brazil's Currency Declines Due to Delayed Fiscal Measures

Reported 13 days ago

Brazil's currency, the real, weakened by about 1% against the U.S. dollar on Monday as President Lula da Silva's government postponed announcing necessary fiscal measures to control spending. This decline, which has reached over 16% for the year, raises import costs and contributes to inflation. Economists stress the urgency of the spending cut package to address the growing fiscal issues and public debt sustainability, while Lula has called for collaborative efforts to curb spending.

Source: YAHOO

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