With lowest price in two years, search for dollar reaches 70%, says Abracam

Demand for the dollar at exchange offices has grown by 70% since the beginning of the war in Ukraine, according to a survey by the Brazilian Exchange Association (Abracam).

This Wednesday (23), the dollar ended the day down 1.44% compared to Tuesday (22), being quoted at R$ 4.844, the lowest price in two years.

According to Abracam, the demand index has not yet reached the level of the period before Carnival, in which many Brazilians went abroad, since the festivities were suspended in most Brazilian capitals.

In this second upward movement, at the beginning of March, demand had already grown 25% and, currently, the demand for the currency has reached 70%.

Association president Kelly Massaro explained that the increase in searches was not directly influenced by the war between Russia and Ukraine. In her view, the scenario was already one of optimism for the sector in this period.

“The war itself is not a factor in demand for the dollar, but the war factor culminated in other points that are favorable in the reduction of the dollar exchange rate and, consequently, in the appreciation of the real. We have borders being opened, we have flexibility in the matter of travel and we also have a dollar, against the real, more devalued. And, yes, this has brought about an increase in the demand for foreign currency, especially the dollar at exchange brokers”, pointed out Massaro.

Faced with the fall in the dollar, customers have been buying amounts above the average ticket of US$ 750, reaching values ​​between US$ 1,500 and US$ 2,000. Compared to March last year, demand for the US currency increased by around 280%, according to Abracam.

The high interest rate in Brazil is pointed out by professor and economist at Fundação Getúlio Vargas (FGV) Mauro Rochlin as the main factor for the increase in the flow of dollars to the country and for the appreciation of the real. Brazil currently has the fourth highest interest rate in the world in the ranking prepared by MoneYou and Infinity Asset Management, behind Argentina, Russia and Turkey.

With the war in Ukraine completing a month, there is concern about a possible disruption of the supply of commodities around the world, which has boosted the price of products from corn to oil since the beginning of the conflict.

“The expectation is that more dollars will enter Brazil via the trade balance due to commodities such as sugar, corn and soybeans. Mainly because of the price factor. The value of these products increased, they became more expensive”, highlighted Rochlin.