Brazil’s currency, the real, getting stronger

manaos — Tue, 03 Nov 2009 06:03:45 +0000

While in the last three decades of the 20th century Brazil had experienced high inflation rates on continuous basis and had to change currency number of times, over the last couple years value of Brazil’s currency has gotten stronger. In circulation for last fifteen years, the real, Brazil’s currency, has been strong and steady against the dollar for most of 2008. This had not been due to dollar’s weakness but contrary, due to steady foreign investment pouring into Brazil, spurred by Brazil’s strong economy namely over the last couple years, with GDP growth rates over 5% annually. Though this year’s economic meltdown decreased demand for Brazilian exports, and the value of real dropped to 2.31 Real to a dollar, the Brazilian government has successfully managed to reverse the trend since. It lowered the interest rates in order to boost the credit supply and bring back investors and the real has been rebounding, currently at 1.76 Real to US$1. If Brazil’s economy will continue its resurgence, real is poised to gain on the dollar some more which will inherently increase the cost of travel and tours to Brazil in 2010.

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Brazil’s currency, the real, getting stronger