# Is coronavirus the only one to blame for Brazilian Real’s rout?

> The real hit its lowest nominal level in its 25-year history during the Covid-19 market panic. Analysts attribute the decline to a mix of global risk aversion, concerns about Brazil's growth, and political friction between President Bolsonaro and Congress.

- Date: 2020-03-12 · published 2020-03-12T12:00:00.000Z
- Category: macro · region Brazil · magnitude low
- Page: https://feedsoft.ai/events/6395-is-coronavirus-the-only-one-to-blame-for-brazilian-real-s-rout
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md)

## Why it matters

Domestic political stress on top of the global sell-off suggests the real may stay weak longer, which keeps Brazilian export commodities competitive in dollar terms. The effect is bearish for dollar prices of Brazilian grains.

## Read by commodity

- USDBRL: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDBRL | 2020-03-12 | 1 | +3.7% | 5.1 | Analysis attributing the real's record-low rout to global Covid-19 risk aversion, growth concerns and political friction explains the demand for dollars and the weaker BRL. |
| USDBRL | 2020-03-16 | 1 | +4.6% | 5.1 | Published days before the move, it attributes the real's record-low rout to global risk aversion, Brazil growth worries and Bolsonaro-Congress friction, which are sentiment drivers that carried into the March 16 drop. |
| USDBRL | 2020-03-18 | 5 | +9.2% | 4.5 | Global risk aversion, growth worries and political friction with Congress pushed the real to record lows, giving the underlying drivers of the depreciation. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2025-11-18 | [Liquidity squeeze in the U.S. could weigh on Brazilian real](https://feedsoft.ai/events/22155-liquidity-squeeze-in-the-u-s-could-weigh-on-brazilian-real.md) | +1.7% | +2.9% |
| USDBRL | 2020-01-31 | [Coronavirus and current account deficit hit the Brazilian Real against the dollar — MercoPress](https://feedsoft.ai/events/55285-coronavirus-and-current-account-deficit-hit-the-brazilian-real-against-the.md) | +0.2% | +5.4% |
| USDBRL | 2024-11-29 | [What is happening to BRL as the Brazilian Real collapses against the US Dollar](https://feedsoft.ai/events/27617-what-is-happening-to-brl-as-the-brazilian-real-collapses-against-the-us-dollar.md) | +1.7% | +5.6% |
| USDBRL | 2024-10-23 | [Market braces for pressure on Brazilian real as Trump’s chances rise](https://feedsoft.ai/events/28085-market-braces-for-pressure-on-brazilian-real-as-trump-s-chances-rise.md) | +0.6% | +1.4% |
| USDBRL | 2025-11-03 | [Foreign investors go bearish on Brazilian real](https://feedsoft.ai/events/22162-foreign-investors-go-bearish-on-brazilian-real.md) | -0.8% | -0.8% |

## Sources

- brazilian.report: https://brazilian.report/liveblog/coronavirus/2020/03/12/coronavirus-fall-brazilian-real-currency/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.