Brazil: Brazilian real weakens in November
November 30, 2011
On 30 November, the Brazilian real (BRL) traded at 1.81 per USD, which represented a 6.8% nominal depreciation compared with the previous month, when it traded at 1.69 per USD. On a year-on-year basis, the real depreciated 5.2% versus the USD. All things being equal, Brazil's economic fundamentals continue to support the BRL, in particular the high interest rate differentials in relation to developed countries as well as a strong international reserve position (Q3: USD 350 billion or equivalent to 17 months of imports). However, the recent negative trend in global commodity prices helped to contribute to the real's depreciation throughout November, as Brazil's currency value is closely linked to movements in commodity prices.