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The US dollar is paid at the opening at 5.04 Brazilian reals on average, which was 0.01% compared to the value of the previous day, when it traded at 5.04 Brazilian reals on average.
In the last week, the US dollar accumulated a decrease of 0.72%, so that in year-on-year terms it still retains a decline of 12.12%. In relation to the changes of this day compared to previous days, it chains three successive days of descent. The volatility of the last seven days is slightly higher than the figure achieved for the last year (15.63%), indicating that it is going through a phase of instability.
In the annual photo, the US dollar has even changed by a high of 5.71 Brazilian reals on average, while its lowest level has been 5.01 Brazilian reals on average. The US dollar is positioned closer to its low than to its maximum.
Between crisis and uncertainty
The real, or the Brazilian real as it is known internationally, is the legal tender in Brazil and is the twentieth most traded currency in the world and the second most traded currency in Latin America only behind the Mexican peso.
Inforce since 1994, the real replaced the “cruzeiro real” and its abbreviation is BRL; it is also the fourth most traded currency in the American continent only behind the US dollar, Canadian dollar and Mexican peso.
One of the events that most marked the Brazilian currency was when in 1998 the real suffered a strong speculative attack that caused its devaluation the following year, going from a value of 1.21 to 2 reais per dollar.
Today there are 1 and 5 cents copper coins, 10 and 25 cents bronze coins and 50 cents cupronickel coins. The coin of a real is bimetallic. It should be noted that in 2005 the pennies were discontinued, but it is still legal tender.
As for the economy, the International Monetary Fund (IMF) cut Brazil's growth by 1.7 percentage points for 2022, especially due to the deterioration of global conditions between high inflation and the COVID-19 pandemic.
It should be noted that the Brazilian economy, the largest in the Latin American region, entered a recession in the second quarter of 2021 and is forecast to stagnate throughout 2022.
Due to COVID-19, Brazil was forced to disburse more money as stimulus measures (about 12% of GDP) in order to cope with the pandemic, which ultimately resulted in a budget deficit for 2022.
Agencies