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Real & pound exchange rate

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

  1. RalphJ

    RalphJ New Member

    One can fix the rate from sterling to euros, but no one fixes the rate to reais. So, what's the use? You're sitting there with euro's in your pocket instead of sterling. The real is continuing to fluctuate against the dollar, euro, pound, and pretty much the same percentage. To me, this "fixing" deal makes no sense whatsoever for a Brazilian investment. I certainly see where it would/could if one could "trade" the real AND "fix" against the real, but as previously stated, you can't.

    Also, I have yet to see Jana respond and guarantee all of us that their funds will be sent in the name of the purchaser/investor and not from the name of her company!!! She has only said, "our transfers will get registered with Banco Central." Well, no big news there, ALL international payments to/from Brazil get registered with Banco Central, one couldn't send an international money transfer to/from Brazil and NOT have it registered with Banco Central if he tried!! As I stated above, the big question is, "In Who's Name Is the Payment Registered"?

    And, for any and all, if ANYONE is asking you to pay them monies for a Brazilian property outside of Brazil, I don't care if it's your most trusted lawyer that you've known for 30 years, GET IT IN WRITING THAT THE FUNDS TRANSFERRED TO BRAZIL FOR YOUR PROPERTY WILL BE REGISTERED IN YOUR NAME WITH BANCO CENTRAL!!!

    That way, if they arrive in Brazil registered in another's name beside your own, then YOUR money isn't "stuck" in Brazil, the person who's name is registered with Banco Central just bought a brazilian property, and is now legally liable to refund your monies and you can buy another one, this time sending it yourself!
  2. JMBroad

    JMBroad New Member

    I don't know Jana's company and as mentioned berated her many a time in the past when she was implying that the Real could be traded.

    However... did you read Cam101's post at all? The one that all this fuss is about?

    The original post referring to Euros, while posted on the Brazilian section of the forum doesn't infer in any other way that the poster was asking how to fix the rate into Euros with the intention of purchasing a property in Reais. It even mentions "purchase on a 110.000 euro property" I took it as someone who, while reading the thread about Reais suddenly thought of the house they were purchasing in Portugal next month and innocently asked what options there were for Euros. No interest in then converting Euros to Reais as that would be pointless. Plain and simple - Cam101 wants Euros.

    New Year spirit of goodwill lasts at least until the end of January, after that we can get back to squabbling with each other :)

    With regards to the registration of funds by the Banco Central do Brasil - I'm also looking forward to Jana's reply - in whose name is the money sent?
    Last edited: Jan 11, 2008
  3. RalphJ

    RalphJ New Member, the paranoia. There is absolutely NOTHING that you have stated in this thread that has me "worked up" about anything. I received an e-mail from Jana, ok? I quoted your post because you stated about fixing vs. the euro...I could've quoted nick's statement. Guess I'll do that (edit) so you can relax. As my point in all of this was, why fix from one currency to another if you can't fix against the real concerning a brazilian investment?

    Once again, I'm only giving sound advice. And there was/is absolutely nothing negative directed at you, Nick, or anyone else besides the person/people that attempt to send funds to Brazil for others if they're not 1000% certain that these funds get registered in the name of the purchaser/investor. And still yet, as I stated, everyone needs to get this IN WRITING!
  4. JMBroad

    JMBroad New Member

    Just for emphasis - the issue re. how the money is being sent to Brazil and in whose name it is registered is the topic to focus on. Cam's request for information on how to fix the exchange rate for Euros is has nothing to do with Brazilian property, fixing Brazilian currency exchange rates or sending cash to Brazil.

    And yes, the fact that the Banco Central do Brazil has to register the money entering into Brazil in your name is of the utmost importance and can't be stressed enough.
  5. RalphJ

    RalphJ New Member

    I wasn't responding to Cam's statements, nor yours, I was responding to Jana's, as she appears to be the one that is working for a company that trades money and "locks" in exchange rates. I thought that was evident.
  6. JMBroad

    JMBroad New Member

    Ahh no, then we've been at crossed purposes - Apologies then, I thought you were following on the GBP vs Euro. You are talking about the GBP vs US$ vs Real exchange?

    I can't see a benefit either. Jana?
  7. RalphJ

    RalphJ New Member

    Exactly. And Jana sent me a very nice e-mail yesterday. And I applaud her for her efforts. But she doesn't appear to understand how some things work in Brazil and that's very understandable. Quite different than most other places. We (foreigners) all have a "brazil" learning curve, mine took years.
  8. JMBroad

    JMBroad New Member

    Oh and while we are on the topic, what about the GBP losing to the US$?
  9. RalphJ

    RalphJ New Member

    LOL....I don't know. I'm sick about how terribly low the pound and dollar are at the moment. Although it's certainly good for our current brazilian assets if we were to sell any.

    I just recieved a small transfer in sterling on monday, the rate that BDB gave me was 3.37.
  10. nickohorny

    nickohorny New Member

    Lol this has gone wild!

    I think me and Cam101 were originally stating the euro/pound because as Grand Natal Golf buyers we will be transferring money to Manzanares lawyers in euro, in which they hold in client account and transfer to developer
    (via banco brasil in our name - hopefully!)

    From what i understand the developer wants paying in euro's ?!

    I have pm'd most of you regarding this anyway, and thanks for all your repsonse / help.

  11. michaelbush

    michaelbush New Member

    This is also a problem as MJR Ralph has correctly stated, you need in writing from the lawyer holding the funds a proof from Brasil that they will accept a transfer from them in your name, in order that your funds get registered against your purchase contract (which I believe you will not have yet on Grand Natal Golf). As I understand the Brasilian law, the contract will have to be in Brasilian Reais, not in euros, so whilst you may send euros to brasil they will be converted to Reais for the developer to draw. If you are using Manzanares then get them to confirm in writing to you as they will have to accept any legal action for wrong information if it all goes wrong!!
  12. RalphJ

    RalphJ New Member

    You're correct Michael. Legal contracts in Brazil are normally only written in reais. And naturally ANY type of currency that is sent to brazil is automatically converted into reais by an agent (bank) of banco central before it's deposited in the receivers account. And once again you are giving great advice....get all of this in WRITING.:)
  13. eagleray12

    eagleray12 New Member

    foreign currency loans

    does anyone know if you can get foreign currency loans out of brazil
  14. eagleray12

    eagleray12 New Member

    fx loans

    would really like to find where i can get JPY or CHF loans from for myself and clients
  15. Golfingworld

    Golfingworld New Member

    Until the Reis is unhinged from the US Dollar there will never be a real exchange rate and plenty of uncertainty. But strength of the Reis does nothing to promote inward investment in land or property and with a 35% drop in Sterling's value against the Reis in 2 years, just goes to show that those specualting in Brazilian real estate might be better off in a hedge fund trading in Currency options...saves the need for all that "Due Diligence"
  16. wolfgang

    wolfgang New Member

    Exchange rate.

    Anyone else notice the strong reversal in the fortunes of £ sterling against the Real over the last few weeks?- up from 3.29 to its current level of 3.47.:)
  17. RalphJ

    RalphJ New Member

    I'm sure you're aware of the 4 different values each currency has Wolfgang, buy and sell for cash, especie, then buy and sell for a bank wire, or ordem de pagamento. I received GBP last Thursday, two days ago, via bankwire and received 3.29. And bankwire is usually a better (higher) exchange rate than changing cash.
  18. michaelbush

    michaelbush New Member

    Yes - it is strange that it has moved so sharply in a couple of days. The mid market yesterday was 3.47, on the 12th it was 3.40. The banks are so greedy they change international transfers at tourist rates! The spread is obscenely wide with some 12 centavas each side! This is something not acceptable in tradable currencies. Buying Euros for example to send to Spain, you will get a spread inside of 1c. If Brazil does allow the real to trade, then we will see fair treatment. Until then the only thing to do is complain!!
  19. Dotty

    Dotty Banned

    You are absolutely spot on!

    Now it is very costly for an overseas investor because your loses are quite high as the crash and enormous depts hit the UK and the US.One year can make a difference in investing buying and selling,winning or losing and now is not the time.
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