The United States currency gained 1.24% on Brazil’s real and the São Paulo Stock Exchange remained virtually flat, at a marginal 0.32% increment. Brazil’s credit downgrade swung the exchange rate.
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The IMF says the cheap commodity could mean asset quality and liquidity in the financial system might deteriorate. However, it also says local banks are well-capitalized and prepared to manage risks.
The agency is the second one to revise down Brazil’s rating and says the move comes as a result of recession, adverse fiscal developments and the political scenario.
Brazil’s National Federation of Industry estimates that the GDP will shrink this year and in 2016. Inflation is expected to be 10.5% in 2015 and 6.8% next year.
The Arab country bought USD 19.6 million worth of Brazilian shoes from January through November. Saudi Arabia’s imports declined.
Year-to-date until November, administrative expenses increased in comparison to the same period of last year. But, with inflation adjustment factored in, spending was lower.
The state-owned company’s chief Aldemir Bendine told the press that it will emerge stronger and more mature from the crisis, and that performance will improve within four years.
The Brazilian Central Bank’s governor, Alexandre Tombini, said that next year the rise in prices will stand within the limit of 6.5% and that he expects the inflation rate to hit the target center of 4.5% in two years.
In November, the main fall happened with shipments of iron ore. Revenues totaled USD 849.2 million. In volume, sales declined 33%.
Demand increased in November from October in Brazil, according to a survey conducted by Serasa Experian. The biggest increment came from large businesses.
Brazil exported USD 4.2 billion and imported USD 2.6 billion worth of goods last week. Average daily foreign sales were up 12%, with purchases down 6.5%.
A Brazilian Central Bank poll of financial institutions shows that inflation is expected to rise this year and in the next as Gross Domestic Product (GDP) shrinks.
Language students from Unifesp, in Guarulhos, São Paulo, who taught Portuguese classes to the immigrants, have built a web portal featuring statements, interviews and photographs.
Brazil’s Development, Industry and Foreign Trade minister Armando Monteiro Neto said Brazil could see a USD 30 billion surplus as finished goods exports go up. He believes president Rousseff will not be impeached.
