The demand of Brazilians for the dollar fell by 25% in May, until this Wednesday (25), compared to the same period in April – the month with the highest demand for the US currency since the beginning of the Covid-19 pandemic. .
The explanation: the high exchange rate in recent weeks. The data are from a survey carried out by the Brazilian Exchange Association (Abracam) this Wednesday (25th), at the request of the CNN .
The main reason for the fall in the movement in exchange offices in May, the price of the dollar came to exceed R$ 5.15 in the first week of the month. On the other hand, in April, it was possible to buy the currency for up to R$ 4.60. Currently, the dollar is at approximately R$4.80.
According to the executive president of Abracam, Kelly Massaro, the drop in demand for the currency was not less due to the proximity to the month of July, the school vacation period, when families usually travel abroad.
“When the cost of the dollar starts to rise a little, as was the case in May, people stop buying the currency, interest declines a little, unlike what happened in April. But I believe that the demand for the dollar should re-establish itself at a higher level, especially because the currency has fallen again and because the July holidays are approaching”, contextualized Kelly Massaro.
The rise in the dollar price and, consequently, the lower demand among Brazilians are directly linked to the cooling off of the war between Ukraine and Russia, which began just over three months ago. That’s what the coordinator of FGV’s MBA courses, Ricardo Teixeira, assesses.
According to him, the cooling off of the war in Eastern Europe reduced international pressure on commodities in the international market, such as oil, which led to a fall in the dollar’s exchange rate.
The economist also highlights that, although the situation in Eastern Europe is not “calm”, the expectation is that there will not be an escalation of tensions in the short term.
“The low demand for the dollar is probably due to the de-escalation of the war in Ukraine. The possibility of new countries joining the conflict or the expectation of using nuclear weapons has diminished over the last few weeks. And that, in a way, reduces the international pressure on the dollar”, said the economist.
Source: CNN Brasil
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