Brazil’s Stock Slide Continues

Brazilian stocks fell for a fifth straight session on Wednesday, losing 2.8% amid investor fears that measures to stem capital flight did not go far enough.

The government has spent close to $20 billion in foreign reserves since Aug. 1 to defend the currency, the real. A 50% interest rate hike and $10.7 billion in budget cuts announced since Friday have failed to mollify the markets.

With almost $900 million exiting the country on Tuesday, Brazil’s foreign reserves now stand at about $55 billion. That’s close to the $53 billion it had last October when the government imposed spending cuts and doubled interest rates to stop a currency run.

Other Latin American bourses also fell Wednesday, partly because of pessimism about Brazil. Argentina’s Merval index dropped 4.64%, Mexico’s Bolsa lost 2.2% and Venezuela’s general index lost 1.2%.