Expectations for reforms from the Bolsonaro government came crashing back to earth this week and there is now a risk premium on the Brazilian real and dollar bonds that could increase further unless pension reform gets back on track. In contrast, the Mexican peso has held up surprisingly well during the recent turmoil in financial markets, and has shrugged off growing signs of opposition to the USMCA trade deal.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services