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Brazil’s Real ‘weakens’

The national currency of Brazil has sunk to its lowest level since January, according to new data.

Finance minister Guido Mantenga has announced that the Brazilian Real has weakened by 8.2 per cent over the last month, which may interest people interested in real estate in Brazil.

He also predicted that the currency is set for its steepest monthly decline since 2002.

The Real climbed a total of 17 per cent in 2007 and closed earlier this week at 1.7777 against the US dollar.

Mr Mantenga said the Real will "keep weakening" due to falling commodities which are narrowing "the county’s trade surplus and reduce investment".

"We’ve reached the limit of the Real’s appreciation," he declared.

Jose Paim de Andrade, founder of real-estate investment firm Maxcap, has told The Economist the property market in Brazil is set to boom for five to seven years.

Tags: Brazil, Property, Real Estate

September 10, 2008

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