In recent years, the Brazilian Real has had an alarming rate of devaluation. Mostly due to the pandemic, the Real has increased from R$4.10 to R$5.42, in relation to the Dollar. The Real has had such a drastic devaluation that in 18 months of a global crisis, the Covid pandemic, the price of the Dollar in Reais raised in over 20% than the price it was 10 years ago, which was R$1.60.
Besides the alarming increase of the Real in relation to the Dollar, another worrying rise can be seen when comparing the Real to Pounds Sterling. In the beginning of the pandemic, the Pound was worth R$5.32, however, during the pandemic, the price increased to R$7.38. 10 years ago, the Pound was worth R$2.63, and currently, due to the devaluation of the Brazilian currency, it is worth R$7.38.
Furthermore, the price of the Euro in relation to Reais increased 20% during the pandemic and tripled in price compared to how it was 10 years ago. In August 2011, the price was stable and around R$2.30, however, 10 years later the price increased by, approximately, 170% and is now at R$6.33.
As one can observe, the Real has clearly been devalued over the past 10 years. Consequently, the Brazilian economy has been affected. This rapid devaluation simply highlights the dire situation the nation of Brazil finds itself in and has unfortunately been in for a long time.
Written by: Carolina Paixão and Lucas Scala
Edited by: Anna Kissajikian