Yesterday the dollar exchange rate had repercussions throughout the country due to the political tension this Friday (24) which will certainly be marked as the big day when a minister accuses a president and the present refutes the accusations.
The controversial and praised departure of Sergio Moro from the Ministry of Justice led the currency to hit a new all-time high, reaching R$ 5.72 during trading, while the now former minister made his last speech in office.
As expected, at the end of the day, when negotiations were closed, the dollar closed for sale at R$ 5.6573, a record high of 2.33%. At the highest point of the day, it was traded at R$ 5.7469. See more quotes.
Consequently, the Brazilian currency, represented by Bovespa closed in sharp decline, having reached more than 9% during trading.
Uncertainties in Brazil keep the dollar rising
We know that amid a scenario of low interest rates – with expectations of even more cuts in the Selic rate by the Central Bank –, the dollar has accumulated a rise of 41.09%.
According to the economic projections, the accumulated increase for the month is 8.88%.
But what will be the fate of Brazil if the dollar continues to rise at this astronomical rate? It is important to emphasize one thing here: it is not the American dollar that is constantly rising; on the contrary, it is the Brazilian currency that is being devalued on the international stage.
Political tensions only harm the country.
Many people do not pay attention to the devaluation of the currency, and consider that the American currency is on the rise. If you compare Trump's currency with the European currency, for example, you will notice that there is no overvaluation, on the contrary, it is much lower.
What is the ideal solution for this scenario?
The best thing, according to economic experts, is to invest in public policies that combat the real problem at this time, which is the coronavirus. As former Minister Moro said in his press conference, the focus now should be on the lives of citizens who will be directly affected.
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Source: G1 News Economy