The correct answer is a) the dollar has depreciated. If the exchange rate falls from 3 to 4 Brazilian reals to the dollar, the value of the currency has decreased.
How is the real doing in 2022 so far? One of the best-performing currencies to begin the year was the Brazilian real, which saw gains from growing commodity prices, increased interest from investors withdrawing money from Russian assets, and a significant increase in Brazil's benchmark interest rate from 2% to 11.75% in only one year.
The BCB does not interfere in the FX market to control the exchange rate level because the Brazilian economy runs under a floating exchange rate regime and the inflation-targeting regime.
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