Despite the the U$5 billion intervention by the Brazilian Central Bank yesterday, the Real opened at R$4.23 to the USD. At 9:30 BRT the dollar has settled at R$4.2184, a gain of 1.76% over last night closing. Some analysts say that the USD could reach as high as R$5.00 by the end of the year... Continue Reading →
Brazil Real Tumbles to New Record Low as Investors Rush to Sell
Brazil’s real fell for a fifth consecutive day and reached a new record low, with the rout in the currency gaining momentum as investors sell amid concern the country’s finances are deteriorating. Even as the central bank intervened to support the real, the currency tumbled 2.3 percent as of 4:47 p.m. in Sao Paulo to... Continue Reading →
Petrobras Riskier Than Argentine Peer Shows Confidence Collapse
To see the damage done to bondholders of Brazil’s flagship oil company, just compare its yields to those of its lower-rated peer across the border in default-prone Argentina. The rout in notes from the world’s largest junk-rated corporate issuer means Petroleo Brasileiro SA’s borrowing costs are now higher those for YPF SA, the oil company... Continue Reading →
Brazilian Real 1993-2015
Brazilian Real 1993-2015 The USD traded at 4.13 BRL on Wednesday September 23, according to interbank foreign exchange market quotes. The Brazilian Real averaged 1.88 from 1993 until 2015, reaching an all time high of 4.13 in September of 2015 and a record low of 0.01 in January of 1993.
Petrobras – Currency devaluation effects on its balloning debt
At R$4.00 to the US dollar, Petrobras' massive debt has increased by R$70 billion compared to last quarter. This amount is equivalent to the company's divestment goal of U$15.1 billion. So much for reducing debt by selling assets. About 80% of Petrobras debt is US dollar denominated. At the end of last quarter total debt... Continue Reading →
Brazil’s Currency Advances as Congress Avoids Spending Increases
Brazil’s real gained from a record low as lawmakers failed to overturn some presidential vetoes that had limited government spending, a victory for President Dilma Rousseff and her attempt to shore up fiscal accounts. Brazil’s currency advanced 0.7 percent to 4.0213 per dollar at 9:09 a.m. in Sao Paulo, strengthening from the lowest level since... Continue Reading →
At 4-Per-Dollar, Brazil’s Currency and Reputation Are in Tatters
The collapse of Brazil’s currency is becoming emblematic of all the progress in the past decade that the nation has now squandered. The real tumbled to the lowest level since Brazil introduced the tender in 1994, wiping out the gains -- as well as the hard-earned credibility -- that former President Luiz Inacio Lula da Silva won... Continue Reading →
Brazil Weaknesses Not Enough to Cost Moody’s Investment Grade
The deterioration in Brazil’s economic and political outlook isn’t enough to strip the country of its investment grade, Moody’s Investors Service senior analyst Mauro Leos said. “There are clear weaknesses facing Brazil, but they’re not as bad as those that we saw when we downgraded other countries,” Leos said Tuesday at a Council of the Americas... Continue Reading →
Brazil August Current Account Gap Narrows More Than Forecast
Brazil’s current account deficit narrowed more than economists forecast in August, as a weaker currency boosts exports and crimps imports in Latin America’s largest economy. The deficit in the current account, the broadest measure of trade in goods and services, narrowed in August to $2.5 billion from a revised $5.7 billion a month earlier, the... Continue Reading →
Market Skeptics Miss Out on $5.5 Billion in Biggest ’15 Deal – Shell/BG
A fresh drop in in oil prices and political instability in Brazil is making investors miss out on about $5.5 billion in Royal Dutch Shell Plc’s pending takeover of BG Group Plc. BG closed on Monday at 990.4 pence, about 9.5 percent below Shell’s cash-and-stock offer. The difference in share prices in the deal -- the largest... Continue Reading →
Brazil Energy Insight 