# Brazil's Real Gains "Toxic" Currency Status, with Fiscal and Political Risk Aversion - 25/05/2020 - Business - Folha

> The Brazilian real has lost about 29-30% against the dollar so far in 2020, the worst performance among emerging-market currencies. Foreign banks have labeled it a toxic asset, citing the coronavirus, a worsening political environment and fears Brazil could lag the post-pandemic recovery. Brazil's CDS risk measure rose 220% this year.

- Date: 2020-05-25 · published 2020-05-25T12:00:00.000Z
- Category: macro · region Brazil · magnitude medium
- Page: https://feedsoft.ai/events/7442-brazil-s-real-gains-toxic-currency-status-with-fiscal-and-political-risk
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md)

## Why it matters

A weaker real raises the dollar cost of Brazilian exports and makes Brazilian grain, meal and other feed ingredients cheaper for foreign buyers, which tends to lift USD/BRL and can pressure global prices.

## Read by commodity

- USDBRL: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2025-11-06 | [Brazil's currency to remain strong despite brewing political doubts — TradingView News](https://feedsoft.ai/events/22158-brazil-s-currency-to-remain-strong-despite-brewing-political-doubts-tradingview.md) | -1.3% | +1.0% |
| USDBRL | 2024-11-11 | [Brazil's currency weakens amid government delays in announcing new fiscal measures \| Reuters](https://feedsoft.ai/events/27614-brazil-s-currency-weakens-amid-government-delays-in-announcing-new-fiscal.md) | -0.6% | +4.7% |
| USDBRL | 2020-03-16 | [Brazil: Stocks dive, currency closes at new record low - The Business Times](https://feedsoft.ai/events/11020-brazil-stocks-dive-currency-closes-at-new-record-low-the-business-times.md) | +5.0% | +7.2% |
| USDBRL | 2021-02-09 | [Brazil's real leads Latam FX losses on fiscal concerns - Markets - Business Recorder](https://feedsoft.ai/events/48852-brazil-s-real-leads-latam-fx-losses-on-fiscal-concerns-markets-business-recorder.md) | +1.2% | +9.3% |
| USDBRL | 2022-12-07 | [Brazilian real up on fiscal relief; Peru's sol falls amid political turmoil \| Financial Post](https://feedsoft.ai/events/38510-brazilian-real-up-on-fiscal-relief-peru-s-sol-falls-amid-political-turmoil.md) | +0.5% | +2.7% |

## Sources

- www1.folha.uol.com.br: https://www1.folha.uol.com.br/internacional/en/business/2020/05/brazils-real-gains-toxic-currency-status-with-fiscal-and-political-risk-aversion.shtml

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