Brazil: Exchange Rate 2011

In 2011, the dollar appreciated 12.6% against the Brazilian Real. As we can see from the chart below, this movement had two distinct periods. In the first eight months of the year, the dollar was in the process of fall in relation to the BRL, and reached its lowest point in July, with cumulative drop of 8% in the year. However, a number of factors contributed to change the course of the exchange rate. Among these measures is the introduction of taxes on foreign exchange derivatives market, which affected the taking of short positions in exchange rate. Also, the crisis unfolded in Europe and the consequent movement of risk aversion led to the outflow of the resources. In September, the dollar reached its peak, up 14%.

Source: Central Bank of Brazil