INSUBCONTINENT EXCLUSIVE:
against the surging US dollar
$30 billion in spot auctions to counter massive dollar outflows
It fell 27.36% against the dollar, ending the year as the worst-performing major currency globally.Brazil also experienced a $15.9 billion
net outflow of dollars, its third-largest annual exodus on record
The government now faces a deficit of about 10% of GDP, straining investor confidence.Navigating Economic UncertaintyDespite the central
ongoing diversification efforts
While US dollars still dominate at 79.99%, the share of the Chinese renminbi increased from 1.1% in 2019 to 4.8% by the end of 2023.The
Policymakers may need to reassess their strategies for maintaining stability and managing currency fluctuations.As global uncertainties
restore investor confidence and implement sustainable policies that promote growth and stability.
