Category Archives: america

In Real Terms

In the past six months, the exchange rate between the US Dollar and the Brazilian Real has shifted 10% in favor of the Real.

According to Google Finance, on November 26, 2010, USD 1 = BRL 1.728.

Today, April 26, 2011, USD 1 = BRL 1.564.

To put that in different terms, consider the following. In Brazil, the maximum daily limit on a cash withdrawal from an ATM is BRL 1000.00. If I had gone to a Brazilian ATM last November and withdrawn BRL 1000.00 from my US checking account, that would have registered a withdrawal in the amount of USD 578.70.

Today, withdrawing the same amount of Brazilian Reais would register a withdrawal on my US account in the amount of USD 640.02.

Ouch.