Brazil’s foreign exchange rate hit a new low on Tuesday as its economy struggles in the wake of a violent riot in Rio de Janeiro.
In a rare move, Brazil’s central bank said foreign exchange reserves fell to $7 billion as of Tuesday.
The central bank says that is still enough to cover the needs of its own economy, but has a $2 billion shortfall for the federal government.
Brazil has been grappling with an economic crisis in the last two years.
The country’s government announced in March that it would cut spending and cut public spending in an attempt to boost the economy.
The government has been working on measures to address a surge in violent crime in the country.
The Federal Police has said that the riot in the city of Maranhao, where nearly 200 people were killed in clashes between police and demonstrators, was an attack on the state.
