The Brazilian real closed at the same levels as yesterday, but has still not managed to recover part of the ground lost in recent days against the US dollar, after the Federal Reserve (Fed) meeting concluded in the afternoon of this Wednesday.
He American dollar was negotiated at closing 5.37 Brazilian reals on averageso that it implied a change of 0.04% compared to the 5.37 Brazilians of the previous session.
In relation to the profitability of the last seven days, the American dollar records an increase in 2.14%% and in interannual terms it still accumulates an increase of 12.03%.
Economists predict that the Brazilian economy will not repeat the growth in the agricultural sector like last year and it is expected to be one of the Latin American currencies that will suffer the greatest depreciation against the “greenback.”
The Fed announced that it is going to keep interest rates unchanged and according to information from Forbes magazine, it is expected that there will be cuts perhaps until December.
In relation to the changes of this day with respect to previous days, he chained five successive sessions in positive values. The volatility for the last week is higher than the data achieved for the last year (9.74%), so it is going through a phase of instability.
The Brazilian economy was positioned as the fastest growing in Latin America driven by the agricultural sector and exports, however, the National Confederation of Industry (CNI) estimates that this scenario will not be repeated this year due to the lack of a solid base .
The CNI estimates that the international economic scenario will prevent the same historical increases from being recorded as last year and expects there to be a slowdown of up to 0.2 percent.
Carlos Kawall, former Brazilian Treasury Secretary, considered that the international scene points to a reduction in the interest rates of the world’s main banks and predicts that there will be economic growth between 1.5 and 1.8 for the South American country.
The real, or the Brazilian real as it is known internationally, is the legal currency in Brazil. and it is the twentieth most exchanged currency in the world and the second in Latin America only behind the Mexican peso.
In force since 1994, the real replaced the “cruzeiro real” and its abbreviation is BRL; It is also the fourth most traded currency on the American continent only behind the US dollar, the Canadian dollar and the Mexican peso.
One of the episodes that have most marked the Brazilian currency was when in 1998 the real suffered a strong speculative attack which caused its devaluation the following year, going from a value of 1.21 to 2 reais per dollar.
Today there are copper 1 and 5 cent coins, bronze 10 and 25 cent coins, and cupronickel 50 cent coins. The one real coin is bimetallic. It should be noted that in 2005 the one cent coins were discontinued, but they are still legal tender.
In the economic sector, like other countries in the region, Brazil has had to face the monster of inflation which rose up to 11 percent in 2022.
The panorama is complicated by the recent change in the country’s politics, since Luiz Inácio “Lula” da Silva assumed a new presidential mandatethe third in his life, in a context in which the economy shows improvements but aid for the pandemic and the increase in social benefits have created a large hole.
