Brazilian Real Currency in Forex

The Brazilian real currency (BRL) is considered to be an exotic currency in the Forex market. Brazil is the world’s seventh largest economy.

Trade Surplus or a Trade Deficit?

Brazil runs a trade deficit of $52.73 billion, giving the country a ranking of 186 out of the 190 countries tracked by the CIA in The World Factbook.

What Does Your Economy Export?

Brazil exports transport equipment, iron ore, soybeans, footwear, coffee, and autos.

According to the World Trade Organization (WTO). Brazil exports $153 billion in goods and merchandise compared to only $26.2 billion in commercial services. The WTO breaks down those exports as follows:

Goods and Merchandise

Agricultural products: 37.7 percent
Fuels and mining products: 21.3 percent
Manufactures: 38.0 percent

Commercial Services

Transportation: 15.4 percent
Travel: 20.2 percent
Other commercial services: 64.4 percent

To Whom Does Your Economy Export?

The WTO ranks the following countries as the top destinations for exports from Brazil:

European Union: 22.3 percent
China: 13.2 percent
United States: 10.3 percent
Argentina: 8.4 percent
Japan: 2.8 percent

What Does Your Economy Import?

Brazil imports machinery, electrical equipment, transport equipment, chemical products, oil, automotive parts, and electronics.

According to the WTO, the country imports $133.7 billion in goods and merchandise compared to only $44.1 billion in commercial services. The WTO breaks down those imports as follows:

Goods and Merchandise

Agricultural products: 6.4 percent
Fuels and mining products: 17.6 percent
Manufactures: 75.9 percent

Commercial Services

Transportation: 18.1 percent
Travel: 24.7 percent
Other commercial services: 57.2 percent

From Whom Does Your Economy Import?

The WTO ranks the following countries as the top sources of imports to Brazil:

European Union: 22.9 percent
United States: 15.8 percent
China: 12.5 percent
Argentina: 8.8 percent
Japan: 4.2 percent

Do You Have an Attractive Government Debt Market?

Brazil currently has a Moody’s rating of Baa2. It received this latest rating on September 22, 2009. This most recent rating was an upgrade from the Baa3 rating that the country had held previously. This is a positive sign for the country’s government debt market.

Do You Have an Attractive Equities Market?

Brazil has an attractive equities market. It is the fifteenth largest equities market in the world, with a total market value of $1.167 trillion.

Central Bank Mandate

The strategic planning of the Banco Central do Brasil (Central Bank of Brazil) aims to ensure the stability of the currency’s purchasing power and a solid and efficient financial system.

The Central Bank of Brazil has foreign currency reserves of $275,968 million and gold deposits of $1,495 million.