{"id":85,"date":"2009-11-11T15:35:25","date_gmt":"2009-11-11T14:35:25","guid":{"rendered":"http:\/\/www.cardy-brown.com\/?p=85"},"modified":"2009-11-11T15:35:25","modified_gmt":"2009-11-11T14:35:25","slug":"controlling-brazilian-fx-for-exports","status":"publish","type":"post","link":"https:\/\/www.cardy-brown.com\/?p=85","title":{"rendered":"Controlling Brazilian FX for Exports"},"content":{"rendered":"

Investment pours into Brazil.Since Rio de Janeiro was awarded the 2016 Olympics Games to compliment the fact that Brazil is to host the 2014 football World Cup, their has been a rapid increase in foreign investors focus on the country. To slow down the flood of investments into the country the government has launched a 2% tax on investments from outside Brazil. With elections rapidly approaching next year the state of the domestic economy which rests heavily on exports must remain competitive to ensure peoples livelihoods. If the BRL gains too much strength against the US$ exports will fall. The Brazilian Central Banks action is likely to become more aggressive the more the Real lifts against the US$. The 2% tax could be increased, baring in mind the domestic interest rate is extremely high \u2013 4-5% above inflation (approximately 6%). Other measures are likely to be implemented until the Central Bank has stabelised the growth of the BRL. <\/span><\/span><\/p>\n

<\/p>\n

Brazilian poultry meat exporters have been counting the cost of a 25% rise of the Brazilian Real against the US dollar. This means that processors have been getting steadily less for their exported products in local currency terms. It has been calculated that the prices processors are now getting are 20% less than they were a year ago.<\/span><\/span><\/p>\n

A global fall in soybean prices could come about in January and February 2010 if the slow US harvest means that US soybeans are still on the market when Brazilian soybeans arrive. Currently growers in Brazil are anxious to capture demand from China and are subsequently planting rapidly maturing soybean types \u2013 which will be harvested early. If the two compete directly the strength of the BRL could remove Brazilian soybeans competitive advantage. However investment into Brazil\u2019s biodiesel industry is facilitating a growing domestic soybean demand which could mitigate against this clash of market soybean producers.<\/span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Investment pours into Brazil.<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/www.cardy-brown.com\/index.php?rest_route=\/wp\/v2\/posts\/85"}],"collection":[{"href":"https:\/\/www.cardy-brown.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.cardy-brown.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.cardy-brown.com\/index.php?rest_route=\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.cardy-brown.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=85"}],"version-history":[{"count":0,"href":"https:\/\/www.cardy-brown.com\/index.php?rest_route=\/wp\/v2\/posts\/85\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.cardy-brown.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=85"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.cardy-brown.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=85"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.cardy-brown.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=85"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}