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Brazil 2
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On January 12, 1999, over a billion dollars fled Brazil. Three days later, the Central Bank attempted to bring about a limited devaluation of the Brazilian currency, the real, but it failed to prevent a free fall. Over the next two days, another $3 billion was pulled out, and by the end of the month, the real had lost over 40 percent of its value. ....
Middle of paper ....ch has locked its own currency into a one-to-one relationship with the U.S. dollar by means of a currency board) has put enormous strains on the fledgling trade bloc. Other Latin American governments worried that investors would not differentiate between Brazil and the rest of the region, slowing down access to the foreign capital needed to meet th.... |
Word count: 5127 |
Page count: 19 |
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