Use the international Fisher effect (IFE) to explain why the Brazilian money market securities may not be a good investment for U.S. investors.

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Brazil commonly has a much higher nominal interest rate than the U.S. Yet, some large institutional investors do not invest in Brazilian money market securities, even when they believe the securities have no credit (default) risk. Use the international Fisher effect (IFE) to explain why the Brazilian money market securities may not be a good investment for U.S. investors.