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Goldman Says Real, Lira, Rand Must Weaken to Close Trade Deficit

Brazil’s real, Chile’s peso and Turkey’s lira may fall “significantly” to curtail widening current account deficits, according to Goldman Sachs Group Inc.

The lira, South African rand and India’s rupee would need to depreciate about 30 percent on a trade-weighted basis, while the real and peso need to fall about 20 percent, London-based analyst Themistoklis Fiotakis wrote in a note today. While the assessments aren’t forecasts, they signal where the currencies “might ultimately belong,” the analyst said.