Part 4/7:
Another contributing factor involves external economic pressures. Former President Donald Trump announced that his administration would impose tariffs on countries such as China and Mexico, which also includes Brazil. However, these tariffs were not enacted immediately, providing a brief comfort to the market and inspiring some investors to remain in Brazil instead of pulling their money out.
Additionally, on the same day Trump took office, the Brazilian Central Bank sold $2 billion in reserves, which was another significant factor in the dollar's decline. This intervention signaled a proactive approach to manage the currency and assured investors of the government's intention to stabilize the economy.