2011: A year of two halves for the real
JUSTIÇA DE SÃO PAULO DETERMINA QUE O MUNICIPIO AUTORIZE A EXPEDIÇÃO DE NOTAS FISCAIS ELETRÔNICAS.
9 de fevereiro de 2024
Por que Rússia deve crescer mais do que todos os países desenvolvidos, apesar de guerra e sanções, segundo o FMI
18 de abril de 2024No wonder Brazil’s finance minister, Guido Mantega, got in such a huff about the strength of the real last year, inciting a global currency war wherever he went.
New data from the central bank on Wednesday shows that a whopping $65.28bn in dollar inflows poured into Brazil in 2011 — almost triple the previous year’s total of $24.35bn.
Soaring prices at the start of the year for key exports such as iron ore lured as much as $15.5bn in January alone. Unsurprisingly, the Brazilian real hit a 12-year high against the dollar in July, despite Mantega’s best efforts to fend off investors with a barrage of capital controls.
But the central bank data shows that 2011 was certainly a year of two halves for Brazil. After petering out in August, dollars actually started flowing out of Brazil in October. By the time December came around, the country lost $1.9bn in 30 days.
In fact, the Brazilian real ended up weakening against the dollar last year by 11 per cent. Be careful what you wish for, eh Mantega? However, there may be some light at the end of the tunnel for Brazil’s currency bulls.
Separate data from the central bank on Wednesday shows that after three months of betting against the real, Brazil’s local banks switched back to a net long position on the currency in December of $1.6bn.
An end-of-year reshuffle or a sign of what’s to come in 2012 perhaps?
