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Current Crisis in Brazil

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Current Currency Crisis in Brazil
Brazil has had a successful and pleasing economic consistency streak for the past twenty-five years, and now its economy is facing arguably the worst recession in 25 years. The current currency crisis in Brazil is believed to come from an embezzlement scheme of an oil company that The President of Brazil, Dilma Rousseff, endorsed. The whole issue was centered on corruption and illegal deals that the government of Brazil used to acquire an oil company in South America, Petroleo Brasileiro.
The estimated value of the embezzlement scheme was about $2.1 billion. The amount involved in the deals was too much for the economy of Brazil. The deal and corruption involving the $2.1 billion caused a plunged inflation that is rising. The inflation could be a serious one since the amount of money that was embezzled affected the balance of the economy in the following ways:
First Brazil raised the tax on financial firms. The government implemented a tax policy that saw financial firms paying more tax that before. The tax, known as the CSLL rose from 15% to 20%. The strategy was to boost the deteriorating economy through boosting the country's annual earnings while it cuts its budget debts and recover from increasing inflation (Jelmayer, 2015). According to Biller (2015), the currency in Brazil has fallen about 60% since the election of Dilma Rousseff as The President. The economy of Brazil remained stagnant from 2011 to 2014, and the Central Bank expects the Brazilian economy to contract in 2015 and 2016. Legal businesses and consumers have significantly lost confidence in the economy of Brazil, and their spending power has decreased at an alarming rate. Also, the sovereign debt has downgraded and rated as junk by the S&P index while Mood's & Fitch rated the sovereign debt of Brazil to the lowest investment grade.
The S&P index and other

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