The Rise of the Dollar in 2024

In 2024, the dollar has been on an upward trajectory, bringing significant effects to the Brazilian economy and directly impacting the daily lives of the population. In a country that depends heavily on imports and faces internal economic challenges, variations in the dollar influence everything from food prices to the cost of electronic products, fuel and international travel.

Why is the Dollar on the Rise?

The rise in the dollar is the result of several factors, both internal and external. Global political and economic instability, high interest rates in the United States and uncertainties surrounding the Brazilian economy contribute to the real losing strength in relation to the US currency. In addition, international investors' search for safer assets, such as the dollar, causes demand to increase, further impacting the exchange rate.

Impacts of the High Dollar on the Lives of Brazilians

Food and Imported Products Many products in Brazil, such as wheat, meat and inputs for food production, are imported. With a higher dollar, import costs increase, directly reflecting on consumer prices. Basic items and processed foods tend to become more expensive, mainly affecting low- and middle-income families.

Fuel The price of fuel in Brazil is directly linked to the international market, and oil is quoted in dollars. With the appreciation of the US dollar, importing oil and its derivatives becomes more expensive, which impacts the final price at the pump and increases transportation and general merchandise costs.

Electronics and Technology Electronic products, such as cell phones, computers, and home appliances, are sensitive to changes in the dollar, since most of the components are imported. With the dollar rising, the prices of these items in retail go up, and Brazilian consumers often end up postponing technology purchases or paying more for basic products.

International Travel For those planning to travel abroad, the impact is immediate. With the dollar rising, flights, accommodation, and expenses in foreign countries become higher, which reduces Brazilians' purchasing power when traveling and limits their access to study and leisure opportunities outside of Brazil.

Inflation and Purchasing Power The rise in the dollar puts pressure on inflation in Brazil, as the cost of imported products and services increases, affecting the economy as a whole. Inflation reduces Brazilians' purchasing power, and salaries become worth less in the face of these increases, creating a cascade effect that affects the entire economy and daily life.

How Can Brazilians Prepare?

In light of this scenario, some strategies can help mitigate the impacts of the high dollar:

Financial Planning: Organizing your budget and identifying expenses that can be reduced is a way to balance your finances.

Investments in Foreign Currency: Diversifying your investment portfolio and considering assets that follow the dollar's variation can protect your assets in times of high exchange rates.

Search for National Alternatives: Reducing dependence on imported products by opting for national alternatives is a way to minimize expenses.

Conclusion

The rise in the dollar in 2024 brings a series of challenges to the economy and to Brazilians' pockets. The effects are felt in the cost of living and purchasing power, impacting various aspects of daily life. Being aware of currency fluctuations and seeking alternatives that help to overcome the effects of the high dollar is essential to face this period with greater financial security.

One way to protect yourself and even take advantage of the scenario of a high dollar is to explore investments in assets that follow the exchange rate variation. Opening an account at Deriv is an excellent option for this, allowing you to invest in a practical and reliable way in the financial market.

Why choose Deriv?

Variety of Markets: Operations with forex, commodities and global indices, allowing diversification in assets quoted in dollars.

Intuitive and Efficient Platform: Perfect for both beginners and experienced traders, offering tools that help in the analysis and control of your operations.

Simple Deposits and Withdrawals: Ease of moving funds, with several payment options.

Qualified Support: Specialized service, ready to answer questions and make your experience safer and more efficient.

Turn the rising dollar into an opportunity for growth! Start now and protect your assets.