Company: PAX
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001628280-25-025640
Chunk: 87

Company: Patria Investments Ltd
Filing Date: 2025-05-15
Form: 20-F
Item: Item 3
Chunk 87
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 countries in which we operate, our business and the trading price of our Class A common shares.

Our functional currency is the U. S. dollar. Currencies in the countries in which we operate, including in Latin America have been historically volatile and been devalued frequently over the past few decades. Throughout this period, governments in Latin America have implemented various economic plans and used various exchange rate policies, including sudden devaluations, periodic mini-devaluations (during which the frequency of adjustments has ranged from daily to monthly), exchange controls, dual exchange rate markets and a floating exchange rate system. Although long-term depreciation of currencies in Latin America is generally linked to the rate of inflation in those countries, depreciation of the currencies occurring over shorter periods of time has resulted in significant variations in the exchange rate as against the U. S. dollar and other currencies. For example, in 2021, the Brazilian real depreciated 7% to R$5.581 per US$1.00 on December 31, 2021. In 2022, the real appreciated 6.5% to R$5.218 per US$1.00 on December 31, 2022. The real/U. S. dollar exchange rate reported by the Central Bank was R$4.841 per US$1.00 on December 31, 2023, which reflected a 7.2% appreciation of the real against the U. S. dollar during 2023 due to fluctuating macroeconomic conditions. The real/U. S. dollar exchange rate reported by the Central Bank was R$6.192 per US$1.00 on December 31, 2024, which reflected a 27.9% depreciation of the real against the U. S. dollar during 2024 due to fluctuating macroeconomic conditions. As of April 25, 2025, the real/U. S. dollar exchange rate reported by the Central Bank was R$5.68 per US$1.00, an appreciation of 8.20% of the real since December 31, 2024. In addition, the Chilean peso has also been subject to significant devaluation in the past and may be subject to significant fluctuations in the future. The observed Chilean peso exchange rate depreciated 13.7% in 2024, depreciated 2.9% in 2023 and appreciated 0.6% in 2022. The depreciation of the Chilean peso in 202