The devaluation of the dollar against the real was one of the highlights of this week’s financial market, in which the US currency fell 5.38% compared to the Brazilian currency. On Friday, the dollar closed the day at R$4.75, the lowest value since March 2020, the month that marked the beginning of the pandemic.
This downward movement should continue to be seen in the short term, according to Carlos Braga, a professor at Fundação Dom Cabral and former director of the World Bank. However, it should not be sustained until the end of the year.
“In the short term, my expectation is that it will continue, due to the real interest rate (discounting inflation) in Brazil, among the highest in the world. But the reality is that, with the increase in inflation, the noise that we will inevitably have throughout the election year and doubts about the evolution of the Brazilian fiscal situation, I do not believe that this will last”, he said in an interview with CNN this Sunday (27). ).
Braga also says that, considering the financial market forecasts for the dollar to close the year at around R$ 5.30, this would be a good time to buy the currency. “But we have to recognize that this is an extremely volatile price.”
See more in the video.
*Posted by Ligia Tuon
Source: CNN Brasil
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