MercoPress. South Atlantic News Agency
Brazil enforces new reserve requirements to weaken the Real vis-à-vis US dollar
The Brazilian currency Real weakened after the central bank introduced reserve requirements on short positions in U.S. dollars held by local banks with the purpose of weakening the Real which this week reached a historic high against the greenback. Read full article
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Disclaimer & comment rulesInteresting article!
Jan 07th, 2011 - 02:29 pm - Link - Report abuse 0Also, allow me to share that the Brazilian economy is booming, and shall keep this pace for the next few years. Internal consumption is going through the roof, foreign companies are arriving in Brazil every day = REAL valuation.....
Jeff, that's not truth, foreign companies arriving in Brazil every day doesn't mean REAL valuation. In Economy things are not that simple hahaha
Jan 07th, 2011 - 04:59 pm - Link - Report abuse 0Xbox idiot,
Jan 08th, 2011 - 11:31 pm - Link - Report abuse 0Brazil is booming for a couple reasons, you cannot say or type that about Argentina:
Foreign companies arriving in Brazil, is a good thing and because it's stable than ever. Hot money is coming in from outside because of close to zero procent interest rates policies in the so called rich nations that are in reality broke or close to being broke (the IMF is robbing them right now). Big Brazilian and small businesses are booming, because of growing domestic demand and exports (though getting weaker because of strong real). Strong real is purchasing power for the Brazilian people. As i typed before, Brazil can become more competative if they cut their bureaucratic system that is outdated and tax reform. There is inflation in Brazil, though it's nothing compare to Argentina or Venezuela and even China, reason, demand grows faster than Supply. Tax reform and other important reforms are important to improve effiency in Brazilian producing sectors..agriculture for example. Economy is not simple for a clown like you.
@ 3 That was rude :(, gosh!
Jan 09th, 2011 - 06:35 pm - Link - Report abuse 0Fido Dido @#3 .... yes, we are booming, but so much is dangerous for future stable development.
Jan 10th, 2011 - 09:56 pm - Link - Report abuse 0Chinese trade is at a rate determined largely by the Chinese want to pay for raw materials - these can change massively. Internal boom is based on the artificial spending stimulation of the 'new middle class' - stimulated by penal income redistributions & (life-long) Balsa Familia grants. Mortgages, new to Brasil, are over-extending the new middle class, and this bubble will burst. Joining the deveoped world comes at a real cost.
And all the time, there is no significant infrastructure and low-end third world levels of education.
Boom! .... I'd swap it for literacy and economic literacy any day.
Geo, Brazil booming is based on exports and domestic demand, you were not reading. If you think it's only China, do your homework again, over and over till you get it. Mortgages is new in Brazil, what is a good thing, at least they aren't stupid enough to lend to unemployed. Nothing wrong with stimulating your Economy, so long it's backed by someting, in this case it's domestic demand and exports. Mortgages are risky, duh, like many investments, but those are good investments. Bubbles happen in all growing economies, but they are suppose to burst (not propped up like what is happening here in Europe and in the US, bad bad bad). Bubble bursts and that leads to lower prices (is already happening in some parts of Brazil).
Jan 11th, 2011 - 01:12 am - Link - Report abuse 0What needs to be done is. Investment in infrastructure, tax reform and education reform. Brazil has a long way to go, though it's on the right track.
Fido Dido (#6): “Brazil booming is based on exports and domestic demand, you were not reading. If you think it's only China, do your homework again, over and over till you get it. .....”
Jan 11th, 2011 - 03:11 pm - Link - Report abuse 0I read rather well, especially if the English is good. Your #3 was not bad, just in need of a bit of fleshing-out.
I am familiar with the trade balances of all Brasil's major trading partners. And I DO know how Dubai 'facilitates' the Brasilian beef trade through Iranian sanctions barriers.
I guess we should both reflect on the extent to which 'China' is progressively 'investing in'/taking over strategic parts of the Brasilian infrastructure - ports, SP-Rio rail, electricity supply to Brasilia/SP/Rio, the top soy fazendas, oil & ore extraction, steel making capability, etc. [Watch who becomes the major new foreign 'partner' in the massive Xingo hydroelectric programme].
It is all so easy whilst the US has its trillion $ focus on the Middle East - South America is an open door to (the inequalities of) trade/exploitation.
Now, if China, etc, were prepared to receive high-tech manufactured goods from Brasil ........
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