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Real & pound exchange rate

Discussion in 'Brazil Property' started by nigelallen, Oct 5, 2007.

  1. beenthere

    beenthere Guest

    If the rules were like that for commercial transactions like buying products for export from Brazil then trade would stop overnight.
     
  2. robh

    robh Administrator Staff Member Premium Member

  3. michaelbush

    michaelbush New Member

    Brasil was already self sufficient in oil, so this would give them the ability to export. How that will affect things I dont know. Perhaps they will take the opportunity to lower interest rates- they are already concerned at the dollar weakness causing export problems to the USA. Hopefully the currency will not strengthen too much more -otherwise it really will affect the competitiveness of their products abroad, including property.
     
  4. PAUL-brasil

    PAUL-brasil New Member

    The falling Pound

    This is not good!!!!

    Last summer the Sterlin £ was hanging around about
    £1= R$4.0
    £1= 1.52 euros
    £1= $2.10 USD

    Today
    is R$3.44 lowest yet
    1.339 euros
    and back to $1.98 against the already heavily fallen weakened doller.

    With possible of a another interest cut in the UK before the summer and the Reais keep holding stronger then its could get much worse of the year.
     
  5. Cam101

    Cam101 New Member

    Also worrying is the Pound / euro exchange rate, with the euro now at its strongest ever against the Pound approx 0.74 this has taken a purchase on a 110,000 euro property up by around £9000 over the last 6 months (around 0.66 in August) in my reconning! Any thoughts on how to work this from the currency exchange experts?

    Cheers
    CAM101
     
  6. nickohorny

    nickohorny New Member

    Its getting worst by the look of it! The euro constantly declining.

    Anyone have any predictions on the rate for an upturn? :(
     
  7. Janoulaki

    Janoulaki New Member

    Weekly currency notes

    Sterling seems to have no friends. Has Gordon Brown finally been found out? The UK has both a balance of payment and a budget deficit both of which need to be funded. With UK interest rates falling this is proving to be somewhat difficult and it is very difficult to gauge where the bottom is for sterling against certain currencies, especially the €. Christmas retail sales have been mixed at best, the housing market is suffering and the credit crunch is still of concern. The markets have started to think that UK interest rates may fall by as much as 1% this year. Only a short while ago the market was predicting a reduction of 0.5%.





    The € is still very much the preferred currency and sits at €1.342/£1 inter bank. It has gained over 10% against sterling since this time last year. Over the Christmas and New Year period the € has gained four cents against sterling. Inflation continues to be of concern to the European Central Bank and so any cuts in € interest rates are very unlikely short to medium term. In fact the market wonders if € interest rates will be increased given the ECB's concerns over inflation. But the Euro land economies are not a bed of roses and are not immune to problems elsewhere. Euro land exports are becoming expensive and uncompetitive. I don't know where the bottom is for sterling against the € but even with sterling's problems the fall in sterling against the € will not go on for ever.


    If you would like to have more info about the currency
    please register for FREE currency report:

    Smart Currency Exchange : Smart Free Report
     
  8. Janoulaki

    Janoulaki New Member

    Forward contract


    Hi,

    you can fix the rate through forward contract.
     
  9. michaelbush

    michaelbush New Member


    We are on the Brazilian Forum?
    NO NO NO. You cannot fix the rate buying forward.Please read the threads and you will see that Brasil unlike other countries is not a traded currency (yet). They do not even accept sterling or euros! In the transaction of remitting money to Brasil it first is changed into dollars (US$). The recipient then changes it to reais after registration with the central bank of Brasil.
     
  10. nickohorny

    nickohorny New Member

    I think he is referring to Euro's??
     
  11. JMBroad

    JMBroad New Member

    In all fairness, and with all the goodwill of the new year, although Janoulaki does repeatedly say we can fix the rate for Brazilian reais, and although I'm normally the first to berate him for doing so, one could possibly argue that this time he was referring to Euros as he was answering someone who was worried about the Euro exchange rate.
     
  12. JMBroad

    JMBroad New Member

    Dang Nick, you beat me to it :( getting slow in the new year, I am
     
  13. michaelbush

    michaelbush New Member


    If so it is my mistake!! Being on the Brazilian thread and reading "you can fix the rate on forward contract", I guess it was easy or even natural to assume we were discussing BR$!
     
  14. RalphJ

    RalphJ New Member


    Michael;

    You are right, the real is not a traded currency, but you are incorrect when you state that Brazil does not accept sterling or euros. When one sends a "western union" their currency, if not dollars, is converted into dollars, then reais. That's western union's policy, not Brazil's.

    If one sends a bankwire, it doesn't matter the currency they send, it will arrive to banco central in the currency they send, euro, sterling, dollar, yen.....it doesn't matter. Then normally banco do brasil converts that currency into reais at the market rate at that moment, actually at the moment they receive all the documents that the receiver will need to provide to banco do brasil, which at times can take days, or even longer. I have received millions of reais in sterling, and it arrived in sterling, I have the documents to prove it. Also in banco central's system, which I have downloaded into my computer, PASCS10-SISBACEN, I have access to all international monetary transactions that my brazilian business has performed via Banco Central's system, I can see the amount of money that arrived, the currency type that arrived, the liquidation date, and the exchange rate at that time and the resulting amount in reais. I just received a bankwire (swift) in sterling this past monday. I have also received numerous transfers in euro, and naturally many in dollar. Brazil receives all currencies via bankwire, just not western union, but that's the way WU is in all countries.
     
  15. Janoulaki

    Janoulaki New Member

    Hi all,

    I am sorry for the confusion, but I quoted the EURO enquiry.

    Next time I will be more careful.

    BTW: I am a woman :)

    Now regarding Brazilian Reais:

    Smart currency work with the company called Buy in Brazil and they do the transfers from UK to Brazil in USD and a lot of the time it worked out cheaper.

    It is true that you can't trade in Brazilian currency.

    :)

    All t he best

    Jana
     
  16. michaelbush

    michaelbush New Member

    This company Buy in Brazil - can you confirm with certainty that any transfers they do to accounts here in Brasil, will all be registered through the central bank of Brasil, correctly? From your description it sounds like another exchange house where the transferred money has a better exchange rate, but never gets registered. When you say works out cheaper, in what way?
     
  17. RalphJ

    RalphJ New Member


    I'll bet you you're 100% correct Michael!! And Jana, if you're monies don't get registered with banco central in YOUR NAME then you're going to have a host of other problems, including not being able to take your money OUT of brazil when you so choose!!!

    BE CAREFUL!!
     
  18. Janoulaki

    Janoulaki New Member

    right

    Everything gets registered with Central Bank (at least what is going out from Smart)
     
  19. RalphJ

    RalphJ New Member

    Well all international payments to brazil get registered with Banco Central, the question is in WHO'S NAME is the payment registered?!
     
  20. RalphJ

    RalphJ New Member


    Jana;

    I simply don't believe that it's possible to be cheaper converting one currency into dollar, then the dollars into reais. That is TWO exchanges your making. And the person or company exchanging the currencies is making a "cut" on each one. One of my partners did this once sending from London as he was given incorrect information from his branch...HSBC. Who told him that the recipient bank (Caixa Economica) to which he was sending only accepted dollars or reais. And that was correct info. What they didn't know is that they could've sent this transfer to Caixa Economica via Banco do Brasil which accepts ALL currencies!!

    Well, it ended up costing us in the longrun around 1400 reais, or 2% of the total transfer.
     
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