Brazil is the country where the dollar lost the most value in 2022. The US currency had a 7.5% devaluation in the country, according to Refinitiv. This Wednesday (16), the dollar fell over 0.99%, quoted at R$ 5,129, the lowest value since July last year.
In addition to Brazil, other exporting countries appear on the list. In Chile, the dollar depreciated by 6%, while in South Africa it was down by 5.8%.
On the other hand, in the euro zone, the dollar appreciated by 0.1%. As in the United Kingdom (0.4%) and Turkey (2.3%).
What explains the devaluation?
Four factors explain the appreciation of the real. The first of them is the increase in the basic interest rate that has been carried out by the Central Bank (BC) to contain inflation, this movement ends up attracting foreign money to the country.
Next is the expectation of a gradual increase in interest rates in the United States, another factor that favors the real. This Wednesday (16), the US central bank, the Federal Reserve (Fed), released a new minutes, but did not make changes in interest rates.
Another point is the weakening of political agendas with fiscal impacts in Brasília. We observe more responsible discussions with public accounts.
Finally, the issue of market fear with the elections in October this year. Foreign investors are less worried about a possible change of government in 2023.
Source: CNN Brasil
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