Real vs Dollar and other currency issues

[Ryjerrob]

I just got back last week. When I turned in my left over reals, I made money. Feels good. Looks like it back to the DR.

I understand what you're saying, but the exchange rate doesn't dictate where I go for mongering. I have a blast in Rio, and until my tastes change, or some experience sours me on the whole scene, I'll just keep going.

In fact, with people staying away, there are more girls for me, and a higher demand for my USD. So I guess that's a thank you!!

ryjer

[Dub624]

Why don't you go to the AMEX office to cash amex checks?

I find that the best way to beat all of these fees and comissions is to just bring cash.

[Dub624]

What a dump the usd is taking against the Real! Makes me want to head somewhere else in South America.

I just got back last week. When I turned in my left over reals, I made money. Feels good. Looks like it back to the DR.

[Exec Talent]

[QUOTE=Geofagus]

Dang it.


in the long run if the Real keeps strengthening. Exports are going to become very challenging to purchase because of a stronger Real and Tourism will start to go down as well. Why go to Brazil when you can go to Dominican Republic or Mexico who has weaker currencies.

What will hurt the country (Brazil) is domestic inflation. The Brazilian government has been underreporting. Do not believe what you read. Goes for the BS the US government and US corps are putting out also. Microsoft's guidance and economic forecast has been the closest I have seen to the truth.

[Exec Talent]

Dang it.

http://www.reuters.com/article/usDol...26793920090805

A little busy right now, but take a look at the ETF - EWZ. That was one way to have made money on the rise in the BOVESPA. Currency trading is another. Remember there almost always is a way to make money. Movement is the key. As long as there is movement, there is money to be made.

If you only look at the financial world from the perspective of exchanging Dollars to Reais at a cambio in Rio, then shame on you.

BTW, even when there is no movement, you can make money by providing money to those who are not making money because there is no movement.

[Geofagus]

[QUOTE=Edward M]Dang it.


in the long run if the Real keeps strengthening. Exports are going to become very challenging to purchase because of a stronger Real and Tourism will start to go down as well. Why go to Brazil when you can go to Dominican Republic or Mexico who has weaker currencies.

[Edward M]

Dang it.

http://www.reuters.com/article/usDol...26793920090805

[Hobbying]

What a dump the usd is taking against the Real! Makes me want to head somewhere else in South America.

[Poucolouco]

I was at Sao paulo a few week ago try to cash some of my amex express TC, most major bank want 10 usd comission for each 100 check that 10% highest I ever seen, even bank in China is only 5 usd, maybe next time I bring check in us 500 or 1000.

I find bank in brazil are slow and hard to deal with, do anyone know place in Sao paulo that I can cash TC cheap.

Fast Eddie 48

Why don't you go to the AMEX office to cash amex checks?

[Gaudente]

We will continue to see the Dollar weakening against most of the world's currencies, and probably even more against the real.

It is really a simple question of supply and demand. Foreigners want to buy the Brasilian currency, the Real, and they want to invest in the Brasilian stock exchange (BOVESPA) and as a result the Real gets stronger (high demand) and the Dollar gets weaker.

It is a proccess which will continue for a good deal of time IMHO. I have been saying it on this thread since the rate was 2.2 that there is a massive influx of foreign traders interested in investing in Brasil, and that we will see the Dollar drop rapidly due to that.

The Brasilian government DOES NOT want the Dollar low, its bad for exporters in Brasil, and every day they set a point in the value of the Realollar exchange that they start to Buy Dollars thus increasing its value artificially.

However the demand for the Real is so great that it has little effect.

Yesterday for example (19 of May) the point of purchase for Dollars was 2.057, and they invested 2 billion real to try to raise the level of the Dollar artificailly and they failed it ended much lower (2% drop).

I am trying to make the point that rightfully or wrongfully, Brasil is percieved by investers in the world as a good place to invest their money, fuled by favorable analysis by some of the world's top economists, this has created a sort of "buzz" around Brasil's market and its rising rapidly, while the Dollar is devaluating rapidly.

I am not making the judgement here if is really justified or not, whether the Brasilian economy is handling the crisis better then other world economies or not, I am just making the point that investers think that it is. And that is what makes the Dollar lose value fast against the Real.

I stil maintain my previous statement that we WILL see the Dollar:Real exchange rate at 1.7/1.8 in about 2 months time, and anyone who wishes to exchange Dollars into Real, especially large sums of money would do well to do it now while the rate is still 2:1. I gave the exact same advice about 2 weeks ago when the rate was 2.2:1 and I am giving it again now.

You WILL be sorry if you wait for the rate to go higher, it wont, you will just be eating your heart out when it reaches 1.8 or lower.

Excellent forecast and almost fulfilled.
Long rise to the real and the Brazil 2028 10.25% Global BRL bonds !

[Fast Eddie 48]

I was at Sao paulo a few week ago try to cash some of my amex express TC, most major bank want 10 usd comission for each 100 check that 10% highest I ever seen, even bank in China is only 5 usd, maybe next time I bring check in us 500 or 1000.

I find bank in brazil are slow and hard to deal with, do anyone know place in Sao paulo that I can cash TC cheap.

Fast Eddie 48

[Bimbo Boy]

I checked the history in oanda about Euro to Reais so:

2 january 2009: 1 euro=3,29 reais

27 july 2009: 1 euro=2,69 reais

Is this normal as we are in low season , in Brazil, and we can expect euro getting stronger in the end of year or what else ?

Different rate, but I guess, the problem is more or less the same with usd $.

Why Reais is getting so strong ?

If I calculated right, to enjoy Rio now is +22% more expensive than 7 months ago, obviously doing the same things, so it means to me a huge difference !!!

The trend in the past 4 years is that the Real gets stronger with respect to the Euro. It sort of stabilized between 2.6 to 2.8 from 2006 to 2008. The actual financial crisis was a freak and the Real tanked down to 3.3 Real to an Euro. Since then, it has been quickly coming back to the 2.6/2.8 band.

Now the question is how high will the real go ? Financial institutions and sending their money to the Brazilian market that doesn't have the depth of the American or European markets. Could it be a new financial bubble ?

Bimbo Boy

[Eros74]

I checked the history in oanda about Euro to Reais so:

2 january 2009: 1 euro=3,29 reais

27 july 2009: 1 euro=2,69 reais

Is this normal as we are in low season , in Brazil, and we can expect euro getting stronger in the end of year or what else ?

Different rate, but I guess, the problem is more or less the same with usd $.

Why Reais is getting so strong ?

If I calculated right, to enjoy Rio now is +22% more expensive than 7 months ago, obviously doing the same things, so it means to me a huge difference !!!

[JohnnyBraz]

US dollar is down to 1.90r to the dollar, last week I was getting 2.00 to the dollar from bobby at Blame it on Rio travel.

[Hobbying]

Pnc has no atm fees if you have a avg month balance of 2, 500 and reimburses for fees by the other bank such as citibank in Brasil or banco do 24 horas machines. HSBC atm does not charge a fee but does limit the amount you can take out per day depending on the atm but max R1000 a day. The atm's at GRU airport do not have a fee.

Capital one have been good to me so far, no fees and they give you the best rate of the previous day. Bank of America Amex is 1% int'l fee but states they use the discount bank rate. There are about 5 different rates used depending on the industry.

But 3% fee is nominal compared to the time, money, energy spent to get to brasil to let it deter you from having fun.