Brazil's 'electoral dollar' regime: FX risk premium builds ahead of October vote

GX Capital's term 'electoral dollar' describes the August-October window when the BRL exchange rate incorporates a risk premium tied to the two possible outcomes of Brazil's presidential election (first round Oct 4, second Oct 25). The market has adopted the term, but no standard definition exists. This signals rising FX volatility and a risk premium in Brazilian assets as the vote approaches.