Brazilian President Luiz Inácio Lula da Silva is facing increased pressure to implement fiscal reforms following a significant sell-off of the country’s currency, the real.
Lula’s government has been under scrutiny for months over its handling of the economy, and the recent depreciation of the real against major currencies such as the US dollar and euro has raised concerns about inflation and debt levels.
The sell-off has also led to a surge in interest rates, making borrowing more expensive for companies and consumers. This is likely to have a negative impact on economic growth and could exacerbate Lula’s already pressing fiscal reform agenda.
Fiscal reform advocates are now calling on the government to take swift action to address issues such as high public spending, inefficient state-owned enterprises, and inadequate infrastructure. Failure to implement meaningful reforms could lead to a loss of investor confidence and further destabilize the economy.
Source: https://www.ft.com/content/1c67dc52-4791-4c33-9412-6462b81b8078