Close

Dollar to Real

Good looking out. Al!

Wow it looks like an alien invasion LOL!! :D

I don't use anywhere near this amount. I just need to clear some really tough pasture grasses that act like they have a claim on my land. It's war baby!!! :mad:  :lol:

I'm trying to get the house ready for Festa Junina. Kinda like Octoberfest back home. Its a LOT of fun, but also a LOT of work for everyone's favorite Exnyer!

Well I gotta go do a crapload of painting :sosad:  L8ter dude.

check this out!!

https://en.wikipedia.org/wiki/Festa_Junina

The Real is gaining strenght 3.25 today to the 1.00USD. will it gain more strength in the coming weeks? That was quite a hefty leap for last week it was averaging about 3.42 to the $1.00 USD. Is this a good thing or not. Just chiming in.

Brexit is the cause of this particular uncertainty. People are concerned and some fearful of what comes next. A truly seasoned investor will "sell on the rumor and buy on the news". In the meantime, selling under performing stock and parking the proceeds in US Dollars is just an excellent investment strategy until "the news" arrives.

US$ 1 = R$ 3.28

According to this article, the Brazilian central bank has intervened and will continue to intervene to keep the Brazilian real from gaining too much against the dollar. (If Brazilian exports become too expensive, importers will be put off, and it would not bode well for Brazil's economic recovery.)

"The central bank is trying to create a psychological floor for the market, with the real trading around 3.3 to 3.2 per dollar," said Luis Gustavo Pereira, an strategist at Guide Investimentos in Sao Paulo. "The dollar was practically in freefall, and with these interventions the central bank is minimizing volatility and softening the fall."

http://www.bloomberg.com/news/articles/ … tervention

"Reverse currency swaps are instruments through which the central bank can weaken the real, and are an equivalent to buying U.S. dollars in the futures market."

"The central bank is trying to create a psychological floor for the market..."

In investing, many terms are contradictory. A "floor" actually means maximum a "ceiling" acutally means minimum. The confusion is intentional. The "psychological floor" comment is telling. It suggests to me that REAL PLAYERS are betting on the facts.

If Temer and Co. are serious about fixing this economy, then betting on that result is smart. Serious players can afford to buy Reais cheap now in order to sell high later.

So far the only actions taken are reversals of social programs, OK, but what about infrastructure, corruption, support of small business, opening up the markets?

Weaking the currency is a REACTION. Not to be taken seriously. Busy work.

Remember; A dog that chases it's own tail, will be busy.

http://www.reuters.com/article/us-brazi … SKCN0WK2UR

Exnyer, governments use currency floors to limit appreciation and permit depreciation, right? For once, I think the Brazilian government is doing the right thing because this will keep monetary conditions more stable and in the long run, will put less pressure on the Brazilian real to perform. Moreover, I think 3:1 is right where the real should be...2:1 is just dumb. If it ever hits 2:1 again, Brazilians will go back to complaining (ahem, bragging) that Rio's real estate prices are as expensive as London's. lol

quote from Investopieadia:

Swaps are a form of financial derivative that, together with futures and options, have been collectively referred to as weapons of mass destruction by Warren Buffett. Indeed, the use of credit default swaps by financial institutions to make bets against the US housing market exacerbated the impact of the 2007-2008 financial crisis, leading to the most severe recession in recent times.

The bottom line is, nothing permanent is being done here. This is the same as selling  Brasil's dollar reserves or buying the dollar to PROP UP the real. Swaps have time limits and must be settled in the future at predetermined rates. Brasil is in no position to dictate those terms.

With this band aid in place, Temer and Co, may feel it is easier to cut, cut , cut rather than build the tax base needed to dig Brasil out of this and future crises.

The real money investors see this as a ploy and will not take the bait. If Temer and Co. do not deliver, The swaps will bring the profits. If they are successful in creating a strong economy, then they profit from the Reis they bought cheap.

A strong Brasil will mean better public services. better quality of life all around. Oh and it all will come at a smaller price tag.

Reals been holding steady for the last month not to much of a bouncing ball, from my observation it's been holding anywhere from 3.20 to 3.30 comparing with the USD. Stability is good anybody see anything new on the horizon.

Frankly Al, I was expecting more of an Olympic bounce to the exchange rates. Maybe this means nothing and investors will come running with bags of cash.....

As with all things, wait and see. :)

exnyer :

Good looking out. Al!

Wow it looks like an alien invasion LOL!! :D

I don't use anywhere near this amount. I just need to clear some really tough pasture grasses that act like they have a claim on my land. It's war baby!!! :mad:  :lol:

I'm trying to get the house ready for Festa Junina. Kinda like Octoberfest back home. Its a LOT of fun, but also a LOT of work for everyone's favorite Exnyer!

Well I gotta go do a crapload of painting :sosad:  L8ter dude.

check this out!!

https://en.wikipedia.org/wiki/Festa_Junina

Found these two recipes, I know its :offtopic:  yet didn't see a PM you.
Watch "Home Made Roundup Alternative" on YouTube
https://youtu.be/fRS6H2wE6ME

Watch "POWERFUL HOMEMADE VEGETATION KILLER See it work.BEST & cheapest yet! Less than 50¢ per gallon!" on YouTube
https://youtu.be/Ad-hncscnZc
let me know what you think. Have a good one!

Hi
What is the Dollar to Real to do with killing weeds, ???????????
LOL

http://riotimesonline.com/brazil-news/r … p-in-2016/

Although the economic situation in Brazil is not expected to significantly improve in this last semester, the foreign exchange rate should remain somewhat stable. Differently from the volatility and depreciation seen at the beginning of the year, the Brazilian real should close the year at R$3.26/US$1 economists now say.

The local currency, however, will not be able to avoid an appreciation in the U.S. dollar, next year, with the foreign exchange rate forecast to close 2017 at R$3.45/US$1.

Is there a safe place to exchange money in Macae or Rio das Ostras at a fair rate?   The exchange office have extremely high fees and low rates!!!

New topic

Expatriate health insurance in Brazil

Free advice and quotation service to choose an expat health insurance in Brazil

Moving to Brazil

Find tips from professionals about moving to Brazil

Travel insurance in Brazil

Enjoy a stress-free travel across Brazil

Flights to Brazil

Find the best prices for your flight tickets to Brazil