In the race to the bottom, there occurred some changes in the top 3 currencies. The Brazilian real confidently surpassed the Russian ruble and now occupies the honorable third place.
Starting from the end of last year, the Turkish lira has been leading in terms of depreciation, a decline of 41.85% against the dollar. The Argentine peso took the second place by losing 37.78%, and the newcomer of the rally, the Brazilian real, fell by 14.81 percent. Earlier the third place belonged to the ruble that slid 13.36%. However, political uncertainty ahead of presidential elections has added to the local currency’s drop. Given such large-scale losses, experts predict the government intervention to stabilize the situation. Among the envisaged measures, first of all, the central bank could further increase swap auctions and REPO operations, and the Brazilian Treasury will repurchase government bonds. The situation is aggravated by the upcoming elections yielding to a rise in the financial market volatility. And to describe Brazil's presidential campaign as dramatic would be putting it mildly. Citizens of the country have to choose not only the president but also governors, vice-governors, and representatives to the state legislatures.
In general, the situation is tense, and it will definitely affect the financial market, making the Brazilian real dip further. We should wait till the end of elections to see what will happen with the currency.
