Brazilian currency crisis of 1999

E7567

currency crisis economic event financial crisis

The Brazilian currency crisis of 1999 was a major financial turmoil in which Brazil was forced to devalue the real and abandon its currency peg, triggering inflationary pressures and economic instability.

Statements (49)

Predicate	Object
instanceOf	currency crisis → economic event → financial crisis →
country	Brazil →
describedBySource	International Monetary Fund reports on Brazil 1998–1999 → World Bank analyses of Brazil’s macroeconomic adjustment in the late 1990s →
endTime	1999 →
followedBy	implementation of inflation targeting in Brazil → reforms of Brazil’s exchange rate policy → strengthening of Brazil’s fiscal responsibility framework →
hasCause	contagion from the 1997 Asian financial crisis → contagion from the 1998 Russian financial crisis → high public debt levels → large current account deficits → loss of investor confidence → overvalued exchange rate → speculative attacks on the Brazilian real →
hasEffect	abandonment of the crawling peg exchange rate regime → adoption of a floating exchange rate regime → banking sector stress → capital outflows → decline in real wages → devaluation of the Brazilian real → economic recession in Brazil → fiscal austerity measures → increase in inflation → increase in poverty rates → increase in public debt burden in local currency terms → increase in unemployment → loss of foreign exchange reserves → political pressure on the federal government → pressure on state-level fiscal accounts → renegotiation of IMF support program → rise in interest rates → tightening of monetary policy → weakening of domestic demand →
location	Brazil →
mainSubject	Brazilian real →
participant	Brazilian commercial banks → Central Bank of Brazil → International Monetary Fund → government of President Fernando Henrique Cardoso → international investors →
partOf	late 1990s emerging markets financial crises →
pointInTime	January 1999 →
significantEvent	January 13, 1999 widening of the exchange rate band → January 15, 1999 decision to let the real float → sharp depreciation of the real in January 1999 →
startTime	1998 →

Referenced by (1)

Subject (surface form when different)	Predicate
Asian financial crisis of 1997–1998 →	followedBy