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:

    • Show Comments (0)

    Your email address will not be published. Required fields are marked *

    comment *

    • name *

    • email *

    • website *

    This site uses Akismet to reduce spam. Learn how your comment data is processed.

    Ads

    You May Also Like

    Brazilian JBS

    Brazil’s JBS Files for US$ 2 Billion Initial Public Offering in the US

    JBS, IPO, Wall Street Brazil-based JBS SA, the world's largest meat processor, filed for ...

    Brazil/Chile interoceanic corridor

    Brazilian Stretch of Atlantic-Pacific Corridor Is Ready

    Brazil, Bolivia and Chile have announced that the interoceanic corridor, from the Atlantic to ...

    Amrik, the Arab Life in Brazil and South America, Comes to NY

    Photography show Amrik: The Arab Presence in South America, which was developed by the ...

    Almir Barbassa

    Brazil’s Petrobras Investing US$ 55 Billion in 2008

    Almir Barbassa. the Financial director of state-controlled Brazilian oil multinational Petrobras, informed that investment ...

    Brazil’s Petrobras Has US$ 37 million to Sponsor the Arts in 2007

    Brazil's state-controlled oil company Petrobras will introduce today in Brazilian capital BrasÀ­lia the Petrobras ...

    Cover story – Not for Kids

    It was a moment of pure electricity and emotion that only live-TV is capable ...

    Outlandish

    Outlandish UFOs are all the rage in Brazil these days. One of the most ...

    16 Nations Gathered in Brazil Sign Accords to Help Haiti

    Yesterday, May 23, at the conclusion of the International High Level Meeting on Haiti, ...

    Braskem from Brazil

    Brazil and Arabs Can’t Bridge the Petrochemical Trade Gulf

    Free trade agreement negotiations between the Mercosur and the Gulf Cooperation Council were the ...