Real to Dollar Exchange Rate
When I first went to Brazil the exchange rate was 3 reals per 1 US Dollar. Over time the dollar had decayed to the 1.5 to 1 level. I checked the exchange rate yesterday thinking that the rate might give some indications of the future. I was shocked to find out that the dollar was slightly north of 2 : 1 yesterday. Today it is 2.2 :1. Very strange indeed. What could the possible reasons be?
- stealth investors have their money outside the country and there is a panic ?
- gov’t trying to stimulate economy ?
- commodities cratering ?
This sort of gyration makes it so it is impossible to plan new business and very very difficult to maintain old business.
The rate of fall of the graph is nothing short of harrowing.
Because Brazil is also running its printing presses full tilt and the "thick as thieves" rapport between Child President Obama and President for Life Lula of Brazil I am adding a chart of dollar versus Euro to better track what B.O. is doing to the dollar:
Baltic Dry Index provides a proxy for world trade levels
May 21st, 2009 at 7:38 pm
Good graphs showing how much the commercial world pays (in random currency movement) because governments can’t get their act together.
Lula FM is actually given great credit for paying back most of Brazial world debt, maintaining a big Trade Surplus (27B/yr as Apr’09) & supporting tha Real.
But currency traders have long memories…when Bra devalued the cureizo essentially to 0 in ‘93 that’s IT! my CTA still won’t let me trade R/$.
Useful tip for the nite? S&P says they’re looking to devalue GRP’s AAA National Bonds! Sell GRB/CHF???
August 9th, 2009 at 4:47 am
Obama is killing the dollar with his mega-big treasury auctions as of this date of comment. The american empire is in decline and we have a barbarian as emperor.