Learn Everything About American Currency: How American currency works in Brazil and around the world.
We all know the value that the dollar has in the world, it is practically the one that “rules” the rest of the world’s currencies. But do you know how the Dollar works in the market? Come with me and I’ll explain.
If you are always connected to our country's economy, you have probably heard about “the dollar rose”, “the dollar closed at 3,15 in the USA” or typical phrases that involve this business world and we are always lost with these you say, without understanding what actually happens.
The dollar currency originally comes from the United States of America, the world's economic power, which is why business is almost always done in dollars. Therefore, any change in the North American economy will have changes in almost all countries, which varies from the amount of currency in the state.
Let's clarify our ideas! When there is a lot of currency – dollars – in circulation in the country, “too many offers” the price of American money falls, otherwise the dollar ends up falling. If there is little availability, the price tends to go up.
I'm still confused! Don't worry, we'll understand better.
Economists who work in the government often try to control the fluctuation through the Central Bank. When there is a dollar in high circulation, the BC – Central Bank – buys the currency, causing the value to rise.
When the dollar is high, the way the bank sees it is to saturate the market, causing the price to fall. It doesn't always work.
When politics are unstable in the country – Brazil as an example – it is called “country risk”, this measures the level of confidence of international investors in making foreign transitions in the country. As a result, investors become afraid of investing high amounts, thus abandoning investments. Then, there is a high withdrawal of foreign money from the market, according to the law of supply and demand, thus making the currency reach the top.
In other words, when there is not much American money on the market, demand increases the price, whereas when there is a lot of dollars in the cash registers, the drop in the value of the currency is inevitable.
DIFFERENCE IN DOLLARS
There are three types of dollars on the market, the Commercial Dollar, the Tourism Dollar and the Parallel Dollar.
The Brazilian exchange rate is flexible. In addition to exchange rates, there are currency purchase and sale rates that influence the “Dollar exchange rate”. The selling fee comes from the banks that dispose the currency on the market. When the institution sells the currency, the rate is established at the value of the current dollar. In the same way, when the customer buys dollars to travel, the sales tax is applied by the banks.
Commercial Dollar
Money used to make import and import transitions between companies also through the Stock Exchange.
Tourism Dollar
It is the dollar exchange rate used to purchase the currency for traveling and credit card payments for purchases made abroad are followed by the Commercial Dollar.
Parallel Dollar
It is the currency sold and bought by institutions that have permission to trade it.
What is the dollar rate you pay on your credit card?
When the card is used abroad, the exchange rate used to convert purchases is the commercial or tourist dollar (even if the invoice is due). This quote is also valid for purchases on foreign websites made here in Brazil. There may be a transaction fee, but this has to do with the governing bank.
Everything ready for the trip, tickets purchased, hotel right, contact days, but you still have the currency, what to do?
Always at least one month in advance, it is important to plan the purchase of the currency, as it may vary; If it is on average R$4,00, wait another 15 days and buy at whatever price it is, so there is no risk of worrying about the local currency.
The ideal is to compare exchange houses to identify opportunities, knowing that the values in the graphs are just estimated numbers and don't add anything extra, the tip is to compare and see which one has the most advantages.
Did you understand how the dollar exchange rate works in Brazil? Do you have any more specific questions? Share with us in the comments! We will be delighted to assist you!
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