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The rise of the dollar in Brazil is having repercussions in the international press! El País, BBC News, Deutsche Welle, Financial Times, The Wall Street Journal, Reuters and other media outlets highlight the Brazilian crisis in their editorials

Written by Paulo Nogueira
Published 29/12/2024 às 22:09
Dollar rise, investment, economic crisis, Central Bank, Brazilian real, inflation, devaluation of the real, interest rates, Brazilian economy, economic policy, oil, commodities, investment market.

The recent high dollar in Brazil has been one of the most talked about topics not only in Brazil, but also in the international press. Newspapers such as El País, BBC News, Deutsche Welle, Financial Times, The Wall Street Journal e Reuters point out the causes and consequences of this scenario that directly impacts the Brazilian economy and global investment relations.

What's happening to the real?

O El País highlighted that the Brazilian real depreciated 21,82% in 2024, becoming the worst-performing currency among emerging countries. Among the main reasons are the market's distrust in the government's fiscal management and persistent inflation. In addition, the interventions of the Central Bank of Brazil were not enough to contain the devaluation.

EL PÁIS – Brazil tries to contain the bleeding of the real after a fall of more than 20% this year
EL PÁIS – Brazil tries to contain the bleeding of the real after a fall of more than 20% this year

In the same vein, the BBC News pointed out that the high dollar makes imported products more expensive, puts pressure on inflation and affects investments. In addition, political and economic instability contribute to an environment of uncertainty.

BBC NEWS - Why the real is by far the currency that has lost the most to the dollar in the world and what to expect from 2025
BBC NEWS – Why the real is by far the currency that has lost the most to the dollar in the world and what to expect from 2025

Global impacts and external factors

For Deutsche Welle, the strengthening of the dollar is a reflection of a global trend. Maintaining high interest rates in the United States attracts investors, further strengthening the American currency. This global movement ends up having a severe impact economies like Brazil.

Deutsche Welle (DW) - Dollar's rise worries economies, not just emerging ones
Deutsche Welle (DW) – Dollar’s ​​rise worries economies, not just emerging ones

Fiscal adjustments and international concern

O Financial Times reported that the real reached a historic low, rising from 6 reais to the dollar. The newspaper highlights that, even with a government plan to save R$70 billion, markets remain skeptical. Business leaders are also concerned about government spending that is fueling inflation and increasing public debt.

Financial Times - Brazilian real hits record low as investors doubt cost-cutting plan
Financial Times – Brazilian real hits record low as investors doubt cost-cutting plan

In turn, the The Wall Street Journal highlighted that market pressure forced the government to adopt austerity measures, cutting social spending and reducing the impact on the budget. This situation, however, has generated even more uncertainty as for politics economic of the country.

The Wall Street Journal - Currency slump forces Brazilian leader to make unthinkable spending cuts
The Wall Street Journal – Currency slump forces Brazilian leader to make unthinkable spending cuts

Reflections on the commodities market

A Reuters highlighted that the high dollar It also impacts the oil market, making the product more expensive for holders of other currencies. This ends up reducing global economic growth and, consequently, the demand for energy.

Reuters - Oil prices fall on demand concerns, strong dollar
Reuters – Oil prices fall on demand concerns, strong dollar

A high dollar in Brazil is not an isolated event, but a reflection of a global context and internal challenges. While investors await greater economic stability and clarity in fiscal policies, the impact of this devaluation of the real will be felt in various sectors. The question remains: how will Brazil overcome this crisis and regain international confidence in its markets?

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Verdão63
Verdão63
30/12/2024 06:54

As long as Congress is contaminated by right-wing ****, it will be difficult to govern Brazil!

Luis.ANCAP
Luis.ANCAP
In reply to  Verdão63
30/12/2024 10:09

Don't shift the blame lol

Verdão63
Verdão63
30/12/2024 06:57

We have to do a clean-up, in the next election, Right wing never again!!!!

Jose
Jose
In reply to  Verdão63
30/12/2024 08:11

It's the fault of the 9-fingered **** and his gang

Patriot
Patriot
In reply to  Verdão63
30/12/2024 21:44

Are you sure you meant RIGHT?

Paulo Nogueira

An electrical engineer graduated from one of the country's technical education institutions, the Instituto Federal Fluminense - IFF (formerly CEFET), I worked for several years in the areas of offshore oil and gas, energy and construction. Today, with over 8 publications in magazines and online blogs about the energy sector, my focus is to provide real-time information on the Brazilian employment market, macro and micro economics and entrepreneurship. For questions, suggestions and corrections, please contact us at informe@clickpetroleoegas.com.br. Please note that we do not accept resumes for this purpose.

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