Brazil Risk Was Never That Low: 206 Points

The US’s Central Bank announcement yesterday that it would keep basic interests rates unchanged at 5.25% a year, sent shock waves and good tides to the Brazilian economy, which saw today the Brazil Risk sink to a record low: 206 points.

The Brazil Risk indicator measures the degree of distrust international investors have towards Brazil. Measured by JP Morgan bank the index retreated 4.17% today compared to the previous day.

That should be good news to Brazilian money borrowers since, at least in theory, the lower the risk index, the lower the interests charged to those Brazilians borrowing money overseas.  

For Brazil, low interest rates in the US are good news. It’s assumed that higher interest rates in America harm developing countries’s economy, since investors are always looking for the best return for their capital without high risks. 

The Fed decision should bring more money to the Brazilian stock market, according to Brazilian analysts. They also expect that now Brazil’s Central Bank will be buying more dollars to reinforce its coffers with the greenback and prevent an even bigger dollar devaluation.

Tags:

Ads

You May Also Like

Poetry

— This hole in which you are, measured in palms, is the smallest share ...

Brazil Gets Evidíªncias, a National Magazine on Islamism

Supplying precise information about Islamism. That's what the creators of the magazine Evidências ('Evidences') ...

Without Petrobras There Won’t Be Any Southern Gas Pipeline, Says Brazil

The Brazilian Minister of Foreign Relations, Celso Amorim, affirmed this Friday, May 12, in ...

Brazil’s Dual Legacy of Slavery and the Monarchy

What do most Americans know of Brazil? Hardly more than the samba, the homeland ...

World’s Top AIDS Experts in Brazil for Conference on HIV

The four-day 3rd IAS Conference on HIV Pathogenesis and Treatment, where more than 5,000 ...

Year-Round Daily Houston-Rio, Brazil, Coming Soon from Continental

US-based Continental Airlines announced this Tuesday, October 28, that it has filed an application ...

Brazil Loses 4.5 Million Tons of Soybeans to Rust

Brazil’s Ministry of Agriculture, Livestock, and Supply’s Department of Plant Health and Inspection is evaluating ...

Cuba's Fidel Castro with Venezuelan President Hugo Chavez

US-Brazil Biofuel Plan Will Condemn 3 Billion People to Death, Says Fidel

In his first two articles in the Cuban Communist Party’s newspaper, Granma, since becoming ...

Brazilian Matta Walks His Bass Into a New CD

Nilson Matta’s name has been associated with Trio da Paz for a long time. ...

First Woman Chief Justice May Become Brazil’s Acting President Today

Four South American heads of state will be meeting today in Puerto Iguazú, Argentina, ...