According to CoinMeta, despite the significant decline in the Brazilian real against the Japanese yen after Lula's re-election as President of Brazil, the yen's role as a financing currency for arbitrage transactions in Latin America remains stable. Other currencies in the region, such as the Chilean peso, Colombian peso, and Mexican peso, have appreciated, highlighting the ongoing demand for Latin American currencies. Fubuo Egawa, head of Standard Chartered's Japan Financial Markets department in Tokyo, stated that the potential dynamics of arbitrage transactions are still intact. Trading in the real during Asian hours is relatively limited, and Japanese investors have not taken on large positions in this currency. This indicates that the spillover effects on the Japanese market should remain controllable. Investors engaged in arbitrage transactions that borrow yen to buy Latin American assets typically benefit from the region's higher interest rates, but any sharp currency depreciation could significantly erode these gains.