Opinion

Brazilian Real getting less weak, but it’s not strong yet

Brazil's currency has gained ground against the dollar thanks to a series of economic factors, but expect more volatility from here on out

Real Currency dollar
Photo: Rafastockbr/Shutterstock

Exchange rate forecasts are famous for putting economists to shame. While predictions about the Brazilian Real — a notoriously volatile currency — are a particular type of sadistic joke. So it’s not much of a surprise that we market economists got them wrong once again. 

So far in 2022, the Real has strengthened significantly against most of its peers and the U.S. Dollar. It is up almost 30 percent relative to an index of major emerging market currencies and around 15 percent against the greenback.

Rewind to the beginning of the year, and the median forecast according to the Central...

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