He euro is paid at the start of the sessions Average 6.50 Brazilian Realwhich represented a change of 0.01% compared to the previous session’s 6.50 Brazilians, it said Dow Jones.
Taking the last seven days into account, the euro recorded an increase of 0.51%, so it is still up year-on-year 8.64%.
If we compare the data with the previous days, there are two consecutive falling sessions. Furthermore, if we look at the volatility of these seven days, we see that it is slightly higher than that accumulated over the last year, so it is in a period of instability.
The International Monetary Fund forecasts Brazil will achieve a growth rate of 2.1 percent by 2025, with energy and raw material exports the main drivers of its economy.
Agricultural activity will also represent an important step forward for the South American country’s economy, with the central bank predicting that this sector will record stronger-than-expected growth. In its latest post, the Brazilian organization explained that the improvement in economic forecasts comes against the backdrop of turmoil related to the national currency.
In the final weeks of 2024, the Brazilian real was devalued by almost 9% against the US dollar, and although the Attorney General’s Office requested an investigation into the spread of fake news that “constituted a direct interference in the markets’ perception of the national currency,” the central bank ruled out a speculative attack on its currency.
The central bank estimates that gross domestic product in 2025 will be lower than in 2024 due to expectations of lower fiscal stimulus and the ongoing reversal in monetary policy.
The Real, or the Brazilian Real as it is known internationally, is the legal currency in Brazil and the 20th most traded currency in the world and the second most traded in Latin America, behind only the Mexican peso.
In force since 1994, the Real replaced the “cruzeiro real” and its abbreviation is BRL; It is also the fourth most traded currency in the Americas after the US dollar, the Canadian dollar and the Mexican peso.
One of the episodes that most shaped the Brazilian currency was when the real was subjected to a strong speculative attack in 1998, which led to a devaluation from 1.21 to 2 reais per dollar the following year.
Currently there are 1 and 5 cent coins made of copper, 10 and 25 cent coins made of bronze and 50 cent coins made of cupronickel. The only real coin is a bimetallic coin. It should be noted that the one cent coins were discontinued in 2005, but they are still legal tender.
In the economic sphere, Brazil, like other countries in the region, had to deal with the inflation monster, which rose to 11 percent in 2022.
The panorama is complicated by the recent change in the country’s politics, as Luiz Inácio “Lula” da Silva began a new term as president, the third in his life, in a context where the economy is improving but pandemic aid and increases in social benefits have created a big hole.
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