You must have heard a lot about the swings in the dollar, especially in the news, right? And, you’ve probably wondered what the importance of this would be in your life, since you do not want to leave Brazil and not even invest in foreign exchange funds.
Well, that’s the question of many people: what does the American currency necessarily have to do with me, and how can oscillation affect my life and my pocket?
That is exactly what we have come to address in this article, enjoy the reading.
Understanding What Makes The Dollar Swing
It is common to think that the dollar is the exclusive property of the United States, but as the most traded currency in the world, it could not be so.
The dollar suffers economic interference from other countries, such as China, which trades directly between domestic and North American goods.
In this sense, the American currency follows the political, social and economic context of the space in which it is being traded, so if it presents instability the currency will also vary.
In addition, the dollar is the currency most used in import and export transactions between countries, and also accompanies the variation of international reserves transactions managed by the Central Bank.
How can this interfere with my life?
Well, if the dollar is at the top of trade negotiations, it means that when it oscillates, the prices of the products we consume also change.
Understanding this, you can not deny that you feel the direct impact in your pocket, including when inflation reaches, in cases of high swings of the currency.
Although they are the first affected, it is not only the price of imported products that vary. The exported ones also have their prices high, even getting more expensive in our country.
This happens when the dollar rises in relation to the real, which makes the products more attractive in the foreign market.
If the oscillation raises the prices of products, when can it be beneficial?
The products exported become more disputed in the foreign market, once their prices go down.
As imported products become more expensive here, consumers choose to purchase Brazilian products, which makes the economy circulate and generate more jobs.
Another beneficiary is the tourism area, with international flights at saltier prices, Brazilians choose destinations within the country itself.
But then, what does it benefit from the low dollar?
The low dollar causes the tourism area to be affected once again, since with the cheapest currency, the choice for international destinations increases.
There is also an increase in the consumption of imported products, which have a better price here because raw materials cost less for industries.
With the dispute for imported products and the prices of raw materials more in account, the result is the reduction of Brazilian inflation, in which Brazilian products are more accessible.
Now that you understand how the dollar is directly related to you, we have a nice tip to follow:
If you plan to travel abroad, schedule the purchase of the foreign currency, and of course, by choosing the lowest quote.
- Is it worth borrowing to make travel?
And be careful with the use of the credit card in your trip, because in addition to the IOF , the exchange rate charged will not be tied to the date of purchase, but rather the payment of the invoice, and until then the variations can greatly increase your debt .
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