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luisvieira
Senior Contributor

Brazil's currency got too strong

The Brazilian Real, the country's currency, has got too strong. At this moment, nearly R$ 3.15 values US$ 1. This means that, if the Real keeps this value or even stronger, that can hurt Brazilian exports. From now, everything will depend on how strong politically is president Michel Temer and how successful are the economic reforms. The Real got stronger as a result of more economic confidence right after Temer took power, replacing Dilma Rousseff.

 

What do you think on that? At this time, the second corn crop harvest is finishing.

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6 Replies
Hobbyfarmer
Honored Advisor

Re: Brazil's currency got too strong

A race to the bottom is better?

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luisvieira
Senior Contributor

Re: Brazil's currency got too strong

That is big issue regarding competitiveness. The price of gas, for instance, in Brazil is over R$ 3.60 per liter (1/4 of a gallon). It is a lot.

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rayjenkins
Veteran Advisor

Re: Brazil's currency got too strong

good for ethanol production/consumption, correct??

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Hobbyfarmer
Honored Advisor

Re: Brazil's currency got too strong

How much of that is taxes?
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luisvieira
Senior Contributor

Re: Brazil's currency got too strong

About 50%.

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luisvieira
Senior Contributor

Re: Brazil's currency got too strong

Yes, there might be an improvement for ethanol.

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