The high dollar has been a reality in the daily life of for many years. This is because this currency has suffered with constant appreciation on the world stage.
Many people think that the rise in the US currency only influences the lives of people who travel abroad frequently or use many imported products.
But this is not quite true. Nowadays the high dollar leads to an increase in the values of practically everything.
This is because with the phenomenon of globalization, different types of products are traded based on the currency quote.
There are some factors that greatly influence the appreciation of the dollar and the most important are political events both abroad and in Brazil.
They change the world economic scenario, putting pressure on the exchange rate and, in certain situations, causing the devaluation of the real in addition to the rise in the dollar.
In this way, both investors and consumers are harmed and end up suffering financially from the consequences of the rise in the value of the dollar.
Currently the value of the North American currency has reached practically R $ 4.50. This reflects significantly on the lives of Brazilians.
Follow this article to understand how the high dollar influences your life even if you don’t use that currency directly.
Problems with the high dollar and how it affects your expenses
If you are thinking that you are not affected by the high dollar because you do not buy or sell anything by paying in that currency and do not travel abroad, you are very wrong.
The dollar directly influences practically everything that is traded in Brazil. This is because this currency has enormous importance on the world stage.
Then you will see in the next items some situations of the day when the high dollar ends up hurting your finances.
The high dollar directly modifies the value of what you buy
See the two main practical examples that the price of the North American currency influences the purchasing power of Brazilians.
Changing the value of Brazilian products
The first thing to consider here is that the high dollar causes inflation to be pulled up.
Because of this, the Brazilian middle class is the first to be affected by the rise in the price of the North American currency.
This is because in Brazil a considerable part of the raw materials are imported, suffering price increases according to the fluctuations of the dollar.
Somehow this ends up impacting practically everything that is sold in the country, since at some stage of the production chain there will be an increase in cost.
In this way, several products used in daily life, such as food and fuel, suffer increases in value due to the high dollar.
In addition, products manufactured in the national territory also end up suffering increases. This often occurs with soy, coffee, sugar, corn and meat, for example.
Increase in the value of international travel
Most Brazilians who travel abroad belong to the middle class and constantly live the difficult reality of having to save for a long time to make a trip abroad.
With the dollar high, the prices of airline tickets are even higher, as well as accommodation.
This is because currently all quotes are made taking into account the dollar value.
The high dollar causes economic crises
Now see how the rise in the currency affects the economy of our country, directly affecting the entire social structure.
The government is unable to stabilize the real
The high dollar makes it very difficult for the government of Brazil to manage to stabilize the real and keep it valued when compared to other countries in Latin America.
Ideally, the real should have greater value in relation to the Argentine peso, Chilean peso, currency in Peru (new sol) and Bolivians.
This reflects directly on the country’s economic scenario, which, in order to be economically successful, must remain prominent at least in the Latin American scenario.
An economic crisis results in unemployment
Due to the long term of the contracts concluded between industries and retail, the high dollar becomes more influential only if it remains high for a long period.
In this way, it begins to spread, directly affecting the Brazilian economy in different social classes.
This is because influences occur in different areas, moving towards unemployment. And when it reaches that stage, it shakes the social structure.
With high unemployment rates, economic movements within the country are reduced, causing increasingly negative consequences.
How to save with the high dollar
As you can already see, the high dollar directly influences the world economy and also Brazil.
So it may seem impossible to evade currency rises. However, there are some alternatives for you to reduce the impacts on your financial life.
See what they are:
- Follow the currency quote and buy tickets when it is low;
- If you are traveling, buy a good dollar when the price is lower;
- Search for imported promotional products;
- Exchange imported food products for nationals whenever possible;
- In the financial market you can profit from currency fluctuations by trading it in the futures market. This is a great opportunity to profit from the high dollar.
By following these simple tips, you will be able to reduce at least a little bit of the impact that fluctuations in the dollar have on your life.
Expenses more sensitive to the high dollar
Undoubtedly for the general population, the expenses that are most modified with the high dollar are travel and the purchase of imported products.
In addition, practically all products of daily use such as olive oil, bread, pasta and biscuits will have their values increased.
In addition to these, medicines, appliances and electronics also have their values constantly readjusted.
Fuels such as diesel and gasoline have a variation in value that accompanies the dollar exchange rate. And this obviously influences indirectly in all the products that the Brazilian consumes due to the increase in the value of the distribution service.
In this way, the cascade effect causes the value of the high dollar to affect the rest of the economy.
Conclusion
As you can see, the high dollar does not only affect businessmen and the Brazilian middle / upper class.
This is because directly or indirectly the rise in the currency has an influence on the costs of production and distribution of products in Brazil.
In this way the value of basic products like bread can be high because of a rise in the dollar.
So, if you thought that the high dollar didn’t change anything in your life, now you know that in fact it has a direct influence on your finances.
