O real had the third best performance in relation to the dollar among 101 coins in February 2022, according to a survey by consultancy Austin Rating produced at the request of the CNN Brasil Business.
According to the consultancy, the currency appreciated by 4.2%, behind only the Afghani, the currency of the Afghanistanwhich rose 9.7%, and the kwanza, Angolawhich increased 6.4%.
As a result, the real had the best performance among the countries of the American continent and among the bricsa group that also includes China, India, Russia and South Africa.
The February movement follows a appreciation trend of the Brazilian currency started in January of this year. In the first month of 2022, the real was the highest currency against the dollar, According to Economatica survey.
This appreciation is mainly linked to the inflow of foreign capital into Brazil, supported by the country’s high interest rates, assets discounted on the stock exchange and high prices of commoditieswith a rotation of investments to countries linked to this type of product.
Other countries known for exporting commodities also had good results in the month, such as Angola, Australia (2.5%), Venezuela (3.9%) and South Africa (1.8%).
Among the biggest drops are the currencies linked to the war in ukraine, which started on the 24th of February. The Ukrainian hryvnia was the worst performer of the month, falling 6.6%, while the Russian ruble slipped 6.4%. Also involved in the conflict, Belarus had a 5.9% devaluation in its currency.
Other countries that are going through or have gone through a crisis also had poor performances in the month. The Turkish lira tumbled 3.4% amid government interventions in monetary policy and a high inflation.
Ethiopia, which is still mired in civil war, and Kazakhstan, which faced a series of anti-government protests in January, are also among the worst casualties.
Meanwhile, the declines in the Russian ruble gained even more strength in Marchwith the market reflecting the impacts of economic sanctions against the country due to the invasion of Ukraine. The currency is already trading at historically low values, with drops of up to 30%.
Source: CNN Brasil
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