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I wouldn't blame the currency because Europe has the worst prices when you convert and their currency is not weak. I think the cost of living and wages are a key part in something seeming expensive. New games will now vary between 35 and 40% of the Brazilian minimum wage, which is absurd.
I don't know how it is in Canada, but if the same situation were to happen it would be the equivalent of someone working 40h per week and making 229 Euros per month (using the new PS5 game prices) or 175 Euros per month (using the Switch game prices). People would riot for sure and the gaming market would collapse.
If we had official representation for games in Brazil and the physical price dropped to R$300 (or even 320), the grey market would be forced to reduce their prices and used games would also drop in price. It would be much better. But this won't happen with just a handful of digital titles