BRAZILIAN EXPORTS ARE MORE SENSITIVE TO DEMAND THAT GLOBAL EXCHANGE RATE, SAYS THE DIRECTOR BC

BRAZILIAN EXPORTS ARE MORE SENSITIVE TO DEMAND THAT GLOBAL EXCHANGE RATE, SAYS THE DIRECTOR BC

Brazilian exports are not much affected by the real exchange rate, however they are more sensitive to global demand. The conclusion is in a study included in the Quarterly Inflation Report, released today (30) by the Central Bank (BC).

The actual exchange rate (minus inflation) effective is based on consumer price indices and value of basket currencies from major trading partners.

“Change in the exchange rate affects imports first. Exports are more sensitive to global demand”, said the Director of Economic Policy at BC, Carlos Hamilton Araujo.

According to the study, this assessment is based on the estimate of low variation in demand, even with changes in prices for products with greater weight in the Brazilian export basket, notably, commodities (primary products, with international quotation).

According to the report, only manufactured exports are more sensitive to the exchange rate.

Source: Brazil Agency