Part 2/7:
The dollar had sustained a value above R$ 6 for 41 consecutive days, primarily following President Lula’s announcement regarding his budgetary cuts which actually seemed to only increase taxes and worsen Brazil's fiscal situation. This led to a general lack of confidence among investors in Brazil, prompting them to withdraw their investments and contributing to the dollar's rise initially. The Brazilian Central Bank intervened during this period to stabilize the exchange rate, but various recent developments have led to a significant drop in value.