If the political noise wasn’t so high in Brazil, could the dollar already be below R$5?
Currently at BRL 5.08, at the lowest price in almost three months, the falling US currency generates this question that is now running in the market. The answer is: it depends on who answers.
For foreigners, Brazil is the hot spot among emerging countries — not least because it is the country with the highest real interest rate on the planet, with the Selic rate at 13.75% pa The situation improves even more if interest rates in the United States do not rise much more, as is the scenario foreseen now.
This is relevant, but not only.
The country has the knife, the cheese and even guava paste in hand to lead a wave of investments in clean energy and redistribution of the global production chain. The gringos believe that, even considering the list of necessary reforms and fiscal balance, which are also crucial for Brazil.
Local investors, on the other hand, respond more with their liver, and struggle with the new government’s past bias.
What separates the two groups is political preference, which, here, has never been for Lula.
In the exchange, foreigners enter and Brazilians leave. Now, the contention is on the US currency. If the dollar drops to less than R$5, the benefit of the doubt that Brazil will have a good time during the year when the world will enter a recession wins.
In this Thursday’s episode (26), the CNN Money reflects market agendas, and also focuses on Aloizio Mercadante’s tenure at BNDES and Jean Paul Prates at Petrobras. The podcast also features an unprecedented study by the Getulio Vargas Foundation (FGV) on a category that has grown a lot in the country in recent years: the self-employed.
Presented by Thais Heredia, the CNN Money it presents a balance of the news subjects that influence markets, finances and the direction of society and the dynamics of power in Brazil and in the world.
*Posted by Tamara Nassif
Source: CNN Brasil
I’m James Harper, a highly experienced and accomplished news writer for World Stock Market. I have been writing in the Politics section of the website for over five years, providing readers with up-to-date and insightful information about current events in politics. My work is widely read and respected by many industry professionals as well as laymen.
