Weak Dollar Hurting Brazil’s Small Businesses

Brazil’s Minister of Development, Industry and Foreign Trade, Luiz Fernando Furlan, says that although the export sector has been strong during the three years of the Luiz Inácio Lula da Silva presidency, many small businesses will have difficulties with the continued valorization of the real against the dollar.

"Big businesses have slack they can take up. They can withstand losses and make up for them in the future. Small businesses do not have that flexibility and it will be difficult for them to continue selling abroad," said the Minister.

Furlan cited the footwear sector as an example where it is reported that Brazil was unable to export three million pairs of shoes in September and four million in October.

Furlan said he was concerned that the country was once again fooling itself with an unreal exchange rate. "Analyses of the situation show that the current exchange rate (US$1=R$2.24) is going to cripple an important number of exporters in the medium term," said the Minister, adding that Central Bank buying of dollars was not sufficient to resolve the problem.

Furlan concluded by saying that this year’s export target is US$ 120 billion. He said that although exports would not fall, "our export growth rate will certainly be affected by the exchange rate and will rise slower than before."

Agência Brasil

Tags:

Ads

You May Also Like

US and EU Must Cut Their Own Flesh, Brazil Argues at WTO Meeting

The ministerial meeting of the World Trade Organization (WTO) in Geneva this weekend was ...

Does Zero Hunger Make Sense? or Cardoso Was Right After All

In Brazil, hunger and malnutrition are part of a syndrome that includes illiteracy, inadequate ...

Brazil Insists Talks with Iran Should Continue Without Dogmatism

Brazil remains willing to mediate talks between the International Atomic Energy Agency and Iran, ...

Brazil to Slow Growth Pace Now

Brazilian markets rose, as investors reacted positively to an in-line interest rate hike in ...

Brazil Gets UN Accolades for Its Refugee Legislation and Work

Around 3,000 refugees, from 54 different countries, are currently living in Brazil. The country ...

US Counting on Brazil to Quench Its Orange Juice Thirst

Brazil seems poised to increase its market share of oranges in the United States. ...

Brazil and Angola Sign Science and Education Accords

The governments of Brazil and Angola signed, yesterday, May 3, six cooperation agreements. Angola’s ...

UN Chief Visits Brazilian Amazon and Calls It Planet’s Common Asset

United Nations Secretary-General Ban Ki-moon concluded today the South American phase of his latest ...

Brazil Joins France to Blame US for Crisis and Demand More Oversight

French President Nicolas Sarkozy in a visit to Brazil and his Brazilian counterpart Luiz ...

Brazil’s GDP Growth on Target

The Brazilian government’s primary surplus from January to July reached US$ 12.853 billion (37.980 billion ...