No Better Time to Invest in Brazil

Investing in Brazil offers a significant upside - the exchange rate. While Brazil’s currency has fluctuated over the years, it’s currently at an all-time high. Ten years ago, you would’ve gotten 2.5 Brazilian reais for every 1 US dollar. Five years ago, it was about 4 reais to the dollar. Now, for every dollar, you’ll get more than 6 Brazilian reais in return.

Looking to buy property in Brazil? Go ahead and divide the purchase price by 6. Land valued at BRL$1 million costs roughly US$165,000. Thinking about starting a company in Brazil? With just US$50,000, you can capitalize your company with approximately BRL$300,000. Or perhaps you prefer to open an account with an investment bank for strategic investments.

Hiring talent in Brazil also comes with advantages. A strong US dollar means the cost of labor is much lower for US companies outsourcing abroad. Call centers, website developers, IT specialists, and graphic designers can all be hired at a fraction of the cost of US salaries. With Brazil’s highly educated workforce, you can find skilled professionals to support your business while keeping operational costs low.

There’s no saying what will happen next. Morgan Stanley has suggested the exchange rate may climb as high as 7 to 1. Sure, it could go up - or it could drop. But at least for now, the buying power of the US dollar allows foreign investors to take advantage of the Brazilian market in ways that domestic investors simply cannot.

GeneralGreg Barnett