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Significance This has led to a substantial reduction in river flows, with serious current or potential impacts on agriculture, foreign trade, and hydroelectric generation. The drought, affecting 58% of Brazil to some degree, also contributes to the spread of fires consuming large areas and producing smoke, severely reducing air quality across several states. Impacts The low levels of rivers originating in Brazil will also affect the foreign trade of neighbouring countries, such as Argentina and Paraguay. Reliance on hydropower makes Brazil’s electricity mix clean, but also more vulnerable to climate change. More severe and frequent droughts would undermine agribusiness, whose exports are a key source of hard currency for Brazil.
A Mon, study studied this question.