When I first went to Brazil the exchange rate was 3 reals per 1 US Dollar. Over time the dollar had decayed to the 1.5 to 1 level. I checked the exchange rate yesterday thinking that the rate might give some indications of the future. I was shocked to find out that the dollar was slightly north of 2 : 1 yesterday. Today it is 2.2 :1. Very strange indeed. What could the possible reasons be?
- stealth investors have their money outside the country and there is a panic ?
- gov’t trying to stimulate economy ?
- commodities cratering ?
This sort of gyration makes it so it is impossible to plan new business and very very difficult to maintain old business.
The rate of fall of the graph is nothing short of harrowing.
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