Currency-trading Losses - Brazil?
April 11th, 2008
sa1518 asked:
The quote below was in today’s WSJ. Can someone pls elaborate on who is taking the currency losses? If the real falls, would Brazil actually earn more in the currency arena when selling commodities such as oil since that particular commodity is priced in Dollars?
The quote below was in today’s WSJ. Can someone pls elaborate on who is taking the currency losses? If the real falls, would Brazil actually earn more in the currency arena when selling commodities such as oil since that particular commodity is priced in Dollars?
But as investors pull out money, the real has plummeted against the U.S. dollar. That’s led to huge currency-trading losses, shaking confidence in Brazil’s commodity export sector.
VANDERHOEF
The currency goes down country that relies on our mining income is higher but we are possibly better off on the difference between the two here in the difference between the same issue petrol is higher but we have been hit.
The bottom line depends on our balance of trade because our balance of trade because our mining income is higher but we are possibly better off on.