Brazilian Real: Election flows and fiscal reform prospects – Societe Generale

Societe Generale notes increased flows into the Brazilian Real (BRL) ahead of the presidential runoff. The bank highlights that the Real has weakened 3% from its post-election high, with buyers appearing near 5.10 and a low bar for a move below 5.00 if Bolsonaro wins. Under a baseline Bolsonaro victory scenario, the institution expects improved prospects for fiscal reforms and debt stabilization.