What are the advantages and disadvantages of the recent rise in the value of the dollar for Brazilians? The dollar has risen due to an external crisis that will affect the economy worldwide. One of the consequences of this financial crisis is the rise in the American currency worldwide.
The Brazilian tourist in the United States is one of the most affected by the high dollar as consuming is getting more expensive. The real wage remains the same, but the exchange rate for the American currency is increasing the value in Brazilian currency. Thus, it is more expensive to buy dollars and buy in dollars. For tourists, there is also the price of airline tickets that are quantified in dollars and, therefore, are becoming more expensive. This can lead to more trips within our country, instead of trips abroad.
Another consequence that can be seen in a short time is the increase of some prices, since many components are imported and the most used currency is the US dollar. Thus, even the average consumer will begin to see price increases in some sectors of the economy. And, depending on how much the dollar rises, this price increase could become widespread, increasing inflation here.
This inflation, which always begins to affect international, imported products, also ends up contaminating products that, theoretically, would not need to be based on the values of the United States currency. This is due to the fact that many of the products are sold in dollars for export, and, if they are sold abroad at a higher price, the Brazilian trader will end up increasing the price here so as not to have a disadvantage in the sale. Thus, there is a vicious circle that pushes all prices up, regardless of having dollarized parts or components.
In this scenario, some importers will be able to choose to buy from Brazilian industry in order not to pay more, that is, they will move more consumption of products manufactured in Brazil, causing an increase in the generation of jobs here and, consequently, a warming of the economy. savings for national industry. This movement benefits Brazilian businesspeople who produce here, but it also motivates those same businesspeople to export to make a greater profit.
A final consequence seen with the rise of the dollar, and the consequent devaluation of our currency, the Real, is the arrival of many foreign tourists, who can consume and inject money into our economy. This will improve the local economy and could improve the lives of the inhabitants of regions where foreign tourism is greater, such as large capitals and Brazilian tourist cities.
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