On Wednesday, in an effort to bring inflation down, Brazil's central bank raised interest rates to 12.75%, a six-year high. The problem is that the country is hiking interest rates -- and trying to curb high prices -- at a time in which its economy is on the brink of recession.

. Brazil holds nearly $250bn worth of dollar-denominated debt, up from $100bn just five years ago. A weak real means that the debt-pile is getting more burdensome. Around $40bn of it is due this year alone.

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