The dollar reaches its lowest value in two years in Brazil

Sao Paulo, March 23 (.).- The US dollar depreciated this Wednesday by 1.43% in Brazil and closed at 4.843 reais for purchase and sale, at the Brazilian commercial exchange rate, which represents its value lowest since March 2020.

This was the sixth consecutive fall of the greenback against the Brazilian currency, which has been appreciating strongly due to the soaring price of raw materials, the fundamental axis of the country’s economy, and the increase in official interest rates.

So far this year, the US currency has lost 13% of its value against the real.

The war in Ukraine, which will complete a month this Thursday, is behind the boost in raw materials in international markets, which could benefit Brazil, one of the largest food producers.

The conflict has also increased inflationary pressures, which has forced the Central Bank of Brazil to continue with its restrictive monetary policy by raising interest rates, which today stand at 11.75%, their lowest level. high since 2017.

Amid global uncertainty over the war, higher interest rates make Brazil a more attractive country for foreign investors, who this week have also pushed the Sao Paulo stock market to its highest levels of the year.

/fp