Brazil Real on its way to hit all time high of R$4.00

The economic and political crisis that has paralyzed the discredited government of Dilma Rousseff from passing an effective fiscal package might force the currency to hit a historic high of R$4.00/USD. Despite a Central bank statement that it will put out USD 3 billion at today’s currency auction.

A survey published today, shows a further deterioration of economic activity in 2016 and pegs the dollar at over R$ 4.00 for the first time in 2016.

What is the bottom? the market makers feel it will still get worse before it gets better or at least until the political crisis is resolved by either the resignation or the impediment of the president.