Brazil's Real Drops on Reports Government Planning for Deficit
- Budget shortfall may reach as much as 90 billion reais: Folha
- High-profile lawyers filed an impeachment request this morning
Brazil's Real Suffers as Rousseff Risks Impeachment
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Brazil’s real fell for a second day on speculation the government will change this year’s budget target to a deficit from a surplus, underscoring its inability to shore up the country’s finances.
All four of Brazil’s largest newspapers now report that the government will revise this year’s budget target for a third time, forecasting a deficit excluding interest payments that may surpass 50 billion reais ($13 billion). The deficit may reach 90 billion reais in the worst scenario, which includes the government paying off all its debts to public banks, Folha de S. Paulo reported without saying where it obtained the information.