>Brazil – prepare for devaluation
Guest post By Thierry Apoteker, CEO and chief economist at TAC
TAC quantitative models show that the BRL is currently overvalued by about 25 to 30 per cent. The IMF index for the BRL real effective exchange rate suggests a 50 per cent overvaluation. With a combination of slower growth, higher external deficits, large speculative inflows and difficulty in cyclical management, the question is now not if the currency will depreciate, but when and by how much.
Posted in central_banks, Commodities, Dollars, LatAm, News
Tagged Brazil, central_banks, Commodities, Dollars, ForEx, LatAm, News
Brazil – prepare for devaluation
Guest post By Thierry Apoteker, CEO and chief economist at TAC
TAC quantitative models show that the BRL is currently overvalued by about 25 to 30 per cent. The IMF index for the BRL real effective exchange rate suggests a 50 per cent overvaluation. With a combination of slower growth, higher external deficits, large speculative inflows and difficulty in cyclical management, the question is now not if the currency will depreciate, but when and by how much.
Posted in Uncategorized
Tagged Brazil, central_banks, Commodities, Dollars, ForEx, LatAm, News
>BANCO DO BRASIL EYES US LENDER
By Samantha Pearson in São Paulo and Andres Schipani in MiamiPublished: April 11 2011 19:08 | Last updated: April 11 2011 19:08
Brazil's biggest bank by assets and profits is poised to become the first in the country's history to acquire a US retail bank, as surging profits and a strong local currency pave the way for international expansion, according to people close to the negotiations.
State-owned Banco do Brasil is in advanced talks to buy Eurobank, a regional lender based in Miami, for an undisclosed amount according to people close to the negotiations. Acquiring the bank, which has three branches in Florida, would give Banco do Brasil a vital foothold in the US market as well as access to lucrative money remittances from the state's Latin American residents. Banco do Brasil later confirmed it had begun talks with the bank.
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