Brazil Real Drops as Budget Deficit Concern Outweighs Bank Vow
- Government commits to paying back money to state-owned banks
- Nation reported biggest primary budget deficit of 2015
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Brazil’s real dropped as concern the government will struggle to curb the budget deficit outweighed a commitment to pay money it owes state-owned banks.
Investors are skeptical that Finance Minister Nelson Barbosa, who took office Dec. 18, will be able to fulfill his pledge to continue his predecessor Joaquim Levy’s belt-tightening. Data released Tuesday showed the country’s primary budget deficit, which excludes interest payments was 21.3 billion reais ($5.5 billion) last month, the worst on record.