Brazilian Real falls to its lowest against the dollar since 2002; central bank injected funds

Friday, September 11th 2015 - 09:41 UTC

Full article 8 comments

A day after Standard & Poor’s slashed Brazil’s credit rating to junk, the Brazilian Real lost close to 2% by the end of the day to 3.865 per dollar—its weakest level since 2002. In an effort to stem the decline, Brazil’s central bank injected $1.5 billion into the financial system Thursday. Read full article

Comments

Disclaimer & comment rules

Brasileiro
I've been saying this for a long time. Brazil should cut all ties with the United States, including diplomatic. With Western Europe continue to maintain a neutral policy as they remain vassals of the US interests.

The West is a speculative bubble that live appearances. Our path to prosperity is in BRICSA, South America and the Caribbean, Asia, Africa and part of Oceania.

The loss of investment grade does not affect us at all. Our foreign currency debt is negligible, less than 7% of GDP. Also Brazilian companies use the BNDES as long-term funding source, rather than the international banks.

If the loss of this grade Western investment came in a financial bind the time Brazil was in a bad situation now. So we should not trust the West. We must say no to its currency, its sources of funding, its arms industry, its companies, its culture, etc.

We must support and act for greater integration of the South. Definitely separate the wheat from the chaff. And say NO to the Western way of life, where speculation and bubbles and sovereign debt are eternally priceless and which can only continue to exist because BRICSA continue to use the dollar for most of its trade and international reserves.

We, from South, should stop financing debt and speculation in the West.

https://www.youtube.com/watch?v=0pjxrglK1tI
Sep 11th, 2015 - 10:54 am - Link - Report abuse 0
-+
ElaineB
@1 The Brasileiro Gang

Of course the are affected by the loss of investment grade. Junk status means less investment - you desperately need it; money leaving your country - you desperately need it; higher cost of borrowing - you definitely don't need that.

I explained in detail why you should not be hanging all hope on the BRIC (S). The idea of the BRIC countries as long term EMERGING markets was coined by an economist at Goldman Sachs written in a paper in 2001. It predicted the four countries as possible EMERGING markets in 2050. Got that? 2050. It is a long way off. People picked up this idea and ran with it to mean they would be the new super powers NOW.

Since 2001 a lot has changed and now three of the four countries are in the shit. Only INDIA is still a good long term investment opportunity. The new I (S).

The US is still the only economic superpower, like it or not. So your dream of isolation from the biggest markets will only damage your already fragile economy. Thankfully, the people running your country do not share your ideals. They used boom times as an opportunity to steal as much as they could, but they understand that trade = wealth.
Sep 11th, 2015 - 01:13 pm - Link - Report abuse 0
-+
Brasileiro
@2
A country that produces 15 trillion dollars a year and has printed 4.5 quadrillion dollars can not be even considered power. USA is leveraged far beyond its capacity to react. United States is a sand castle on the beach.

https://www.youtube.com/watch?v=9dEhj6iz8PE
Sep 11th, 2015 - 05:09 pm - Link - Report abuse 0
-+
ElaineB
@3 I know you don't like the reality but the US is the only superpower in the world. Wish it away all you want to but it does not change the reality.
Sep 11th, 2015 - 06:11 pm - Link - Report abuse 0
-+
Brasileiro
Power is this!

https://www.youtube.com/watch?v=krw1XybPy-Q

Without money. Without nothing. Made for WAR!
Sep 11th, 2015 - 06:32 pm - Link - Report abuse 0
-+
ChrisR
Well, it's all going swimmingly for the Brazil Nuts!

They will never learn as they are socialists / communists and cannot work out why when they do things like fucking with Mr. Market it all goes sideways!

Until somebody can teach them the answer they will keep getting it wrong.

@ 3 Brasso

Another warmongering video only this time it's Russia!

Do you realise that the economy in Russia is about as pitiful as in Brazil?

You are one stupid bastard that's for sure.
Sep 11th, 2015 - 06:41 pm - Link - Report abuse 0
-+
Jack Bauer
@6 ChrisR
The brASSHOLE is a radical little communist piece of shit. As he is a master in posting irrelevant videos, he has most likely seen the one that portrays Lula in 2008, bragging that Brazil 'finally' obtained the so much wanted / needed investment grade from S&P, and now in Argentina, saying that the loss of investment grade means absolutely nothing to Brazil.....Aside from the contradiction, it proves he ain't worth his weight in shit.
If the brASSHOLE weren't such an ignorant idiot , he might question this and wonder whether Lulla was lying then, or lying now .....but he is too brainwashed, and as long as he can feel Lulla's noodle up his “derrière” he's happy.
Sep 11th, 2015 - 06:57 pm - Link - Report abuse 0
-+
Skip
When their delusions cannot blind them to their current plight any longer.... they resort to autarky.

As long as they keep access to all the west's technology and inventions.
Sep 12th, 2015 - 01:06 am - Link - Report abuse 0
-+

Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!