Judging by the reaction in global financial markets to the Brazilian devaluation, at least so far, it would appear that it is not a significant economic event. Indeed, Brazil is a relatively small trading partner with much of the rest of the world outside of the rest of Latin and South America. Financial markets are likely underestimating the global economic import of the Brazilian devaluation, however. The Brazilian economy will suffer through a much more debilitating downturn because of recent events. Despite hopes for lower interest rates in Brazil, that has yet to happen.
Brazilian rates remain among the highest in the world after inflation.
Moreover, interest rates are unlikely to drop much even with the devaluation until the Brazilians get a handle on their runaway government deficit, the root cause of the current crisis. With a foundering Brazilian economy, the rest of the Latin and South American economy will struggle. After recent events, however, the consensus is likely expecting little if any growth in the region this year. Latin and South America taken together is an important part of global trading. U.S. exports to the region account for approximately one-fifth of all exports.