VIEW: Wednesday saw Barclays note....>

BRAZILIAN REAL: VIEW: Wednesday saw Barclays note that "the BRL REER has

depreciated about 26% YtD, the most among major EM FX. The combination, and

mutual reinforcement, of the different simultaneous crises (economic, public

health, political) has brought downside to Brazilian assets. The outlook for the

currency has deteriorated since we put in place our most recent forecast in late

March and we revise the path for USD/BRL higher across the forecast horizon:

- End Q220: BRL5.90 (prev. BRL 5.25) - End Q320: BRL6.05 (prev. BRL 5.30)

- End Q420: BRL6.10 (prev. BRL 5.25) - End Q121: BRL6.15 (prev. BRL 5.20)

- The policy combo is not supportive for the BRL. Prev. episodes of significant

REER depreciation were met with Selic rate hikes as the budget balance

deteriorated. Then monetary easing followed once the budget balance stabilized

or it was clear that it would. In the current episode, the central bank has cut

rates as the BRL depreciated, and the deterioration of the fiscal balance will

begin as fiscal support ramps up. The central bank will likely continue with its

discretionary interventions, which should smooth the USD/BRL path but not change

its trajectory, given the policy mix & fundamental deterioration."