Brazil is only better than poor countries with economic problems; North American exchange rate closed this Friday (Nov 29) at a record level
The real was the 7th currency that devalued the most in 2024 compared to the dollar. The Brazilian exchange rate accumulates a 20% drop from January until this Friday (29.Nov.2024), according to the ranking sent by agency to the Poder360.
Brazil did not appear in the top 5but it is only better than countries with economic problems – such as Ethiopia and Venezuela.
The real is as devalued as the peso in Argentina, a country where . Read the 15 most devalued currencies in the infographic below:
The survey considers call variations ptaxreference rate of the US dollar in reais calculated by the Central Bank. It is different from the commercial quote, used in transactions (which records a greater devaluation of 23.7%).
Use the interactive table below to read the ranking complete with 118 countries (to open in another tab):
DOLLAR BREAKS RECORD
The commercial dollar ended this Friday (Nov 29) at R$ 6,001the highest closing level in history. The market reacts to the fiscal package announced by the president’s economic team (PT). The biggest doubt is regarding the expectation of saving R$70 billion in 2 years. Financial agents say the government .
It also drew attention that the government announced exemption from Income Tax for those who receive up to R$5,000 – a measure that harms revenue collection. It should just start to take effect. The Minister of Finance, , said that the loss of money will be compensated by the increase in charges for people with incomes above R$50,000, but did not give sufficient details.
Haddad that there will be “difficult weeks” in the economy because of the rise in the dollar. Despite this, he said he expected relief in the future.
“If you explain what you are doing, if you are consistent with your actions, you will re-anchor it”declared the minister in São Paulo.
The dollar had closed on Thursday (Nov 28), the day before the record level. It was priced at R$5.99.
Austin Rating’s chief economist, Alex Agostini, said that the global movement is bullish on the dollar, especially with Donald Trump’s victory in the United States. According to him, a credible fiscal commitment by the government would help curb depreciation.
“None of this is enough to face this expansionary fiscal policy, which has been very worrying for the market. Mainly in relation to the sustainability of public debt and not just meeting the fiscal target”declared to the Poder360.
THE HADDAD PACKAGE
Haddad a ceiling for the adjustment of the minimum wage. It will be 2.5% above the INPC (National Consumer Price Index) for the 12 months up to November of the previous year. It’s the most credible measure in the package. Previously, it was based on the variation in GDP (Gross Domestic Product) from the previous 2 years.
Understand below all the measures that the government wants to implement:
Read more details about the measures designed by the government.
The central objective of the package is to balance public accounts and meet fiscal targets. The government wants spending to equal revenues in 2025 (a the deficit is zero). In the following years, the target is to end up with accounts in the black. In practice, it is necessary to increase revenue and reduce expenses. Little was done on the side of the 2nd option, even with Lula 3 almost halfway through.
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