The Brazilian Real dropped 2% against the dollar on Thursday, its weakest level since 2016. The reason for the fall in value is the uncertainty around the general elections taking place in October this year.
Brazil’s national elections have become very unpredictable as former President Luiz Inacio Lula da Silva, is currently leading in the election polls.
Lula da Silva leads the race to the presidency from his prison cell, where he is currently serving out a nine and half-year sentence for corruption and money-laundering.
The former President Lula is not only leading in the polls, he is also dominating. The recent poll numbers shows that he holds a double digit lead against his nearest competitor, Congressman Jair Bolsonaro.
The uncertainty around the future of the presidency has caused the Real to steadily fall throughout the year, already losing a fourth of its value. Lula at the moment is Brazil’s popular choice, even though there is a chance he may be disqualified from running in the elections.
Following Lula’s candidacy is congressman Jair Bolsonaro, and former Gov. Geraldo Alckmin, who seems more likely to win the presidency if indeed Lula is disqualified.