The Brazilian real is trading near its highest level since May 2022, at around USD 4.8, bolstered by a series of interest rate hikes and a positive growth outlook. The central bank has maintained borrowing costs at 13.75% since August 2022, having begun its tightening cycle in March 2021. The Brazilian economy demonstrated robust GDP growth in Q1 2023. Meanwhile, Congress advanced new fiscal rules to control public debt.