Got a tricky question? Receive an answer from students like you! Try us!

Brazilian Real Currency Report - Research Paper Example

Only on StudentShare
High school
Research Paper
Finance & Accounting
Pages 4 (1004 words)


(Name) (Instructors’ name) (Course) (Date) Brazilian Real Currency Report The Brazilian currency has steadily gained since 2003, with the exception of the 2008-2009 financial crisis and more recently when it was weakened by financial market turbulence. The bilateral rate against the (US) dollar appreciated by 75% from 2003 to 2010, hence triggering panic over the decline in competitiveness for Brazilian companies…

Extract of sample
Brazilian Real Currency Report

The objective of this paper is to shed some light on the key factors affecting the behavior (in terms of appreciation) of the real, and specifically to evaluate the extent to which the expanding size of Brazil’s oil sector in the economy has influenced the explanation of these events. Oil production in Brazil has been growing strongly since the turn of the millennium. A variety of energy policies which brought competition in the oil market and abolished subsidies to price controls and imports has supported these developments. This is despite the fact that the industry is still dominated by Petrobas, the state-owned corporation (Kumar 25). Going forward, Brazil’s economy is likely to become increasingly dependent on oil production, particularly of offshore oil, for both local use and export (Guimara?es 19). Petrobas discovered huge oil reserves that have been estimated to have the capability to double the country’s current reserves, propelling the country to among the top 10 countries with respect to oil reserves alone. Oil developments have had a significant impact in explaining the movements of exchange rates, in addition to traditional factors. ...
Download paper
Not exactly what you need?

Related Essays

Financial And Economic Crisis
The paper tells that the subprime crisis in the United States resulted to the financial disaster in the stock market in the United States as well around the world as indicated by country and regional stock indices as shown in the charts of this study. The resulting stock index in the markets throughout the globe is proof that the U.S. financial crisis had a tremendous impact on the global economy. In addition, the impact of the U.S. financial crisis caused the GDPs and other macro-economic indicators around the world to decrease indicating that these countries were affected heavily due to…
16 pages (4016 words)
Risk analysis (Brazil)
The official currency is the Real that divides into 100 Centavos. Moreover, the country pursues industrial and agricultural growth and development of its interior. This entails exploiting the extensive natural resources in the country and utilizing the large labor pool. Today, Brazil enjoys the top position as the leading economic power and a regional leader in South America. In addition, the country led in the economic recovery efforts in the region. However, a wide gap in income distribution and crimes remain greatest problems in Brazil. The Wall Street Journal reported on Brazil’s…
10 pages (2510 words)
Gulf Currency Union
Keywords: Gulf Currency Union, GCU, Middle East, Saudi Arabia. Gulf Currency Union: A Research Proposal Gulf Currency Union is a popular object of professional discussion. Much has been written and said about its benefits and potential costs for the Gulf countries. GCU exemplifies a complex product of multiple influences and reflects the growing role of globalization and integration in economic relations between Middle Eastern countries. However, how GCU will affect these countries remains unclear. Clearly, there is a need for a study of GCU and its effects on Saudi Arabia. The choice of this…
International Finance. Currency Momentum Strategies
2. Summary of the article Using time series data of more than 34 years, the paper has examined some important aspects of FX momentum. The article provides an in-depth analysis of the unsystematic and systematic risks, comparing different momentum strategies, describing the importance of transaction costs, sources for non-standard momentum, over and under reaction and the arbitrage limits. The paper has also researched in effect of business cycle risks on currency momentum. 2.1. Fundamentals According to Menkhoff et al (2011, p. 5-8), momentum strategy refers to the trading strategy where an…
6 pages (1506 words)
Currency crisis
However, his academic excellence and outstanding performance in various portfolios he has held proves his critics wrong (Blackden 2012). The responsibility of salvaging the United Kingdom’s currency crisis will be his primary responsibility as the governor of the Central Bank of England. Blackden’s article in The Telegraph highlights some of the attributes that Mark Carney possess that makes him a good choice for the position. The article clearly outlines possible ways that economists think Mark Carney would use to restore Britain’s dwindling economy. In this way, it has proved and…
6 pages (1506 words)
Currency Exchange
Around 1967 the GBP was devalued by 14 per cent, a major economic policy decision. Since then, the Sterling, on average has either depreciated or appreciated by 14 per cent every two years. The figure below shows how the exchange rate between the Sterling and the United States dollar has performed over a 5 year period. Around the mid 2008 shows a sharp drop in the exchange rate from around 2.0 to a low of 1.4. The significant change in the movement is attributed to the financial recession of the 2008. Sterling/US dollar exchange rate over the last one year For the past one year, the Sterling…
9 pages (2259 words)
Currency Future Contracts
Some buyers and sellers of the instrument used it for speculation. The named instruments are not only used to hedge against unfavorable movements in the value of currency but also in other economic factors such as interest rate, exchange rates and natural calamities (CME group, n.d .). These contacts are reliant on some underlying assets thus are called the derivatives. First, swap is a derivative that involves an agreement between two or more traders to exchange the denomination of their cash flows. For instance, consider two investors from the US and the UK, who have invested in the local…
4 pages (1004 words)