According to World Currency Watch, Now is the Time to Buy the Brazilian real as the Dollar Continues to Sink
World Currency Watch editor, Ashish Advani, is starting to see major signs of recovery for a few specific exotic currencies – including the Brazilian real.
(Vocus/PRWEB ) June 23, 2009 -- World Currency Watch editor, Ashish Advani, is starting to see major signs of recovery for a few specific exotic currencies – including the Brazilian real.
The Central Bank of Brazil (BACEN) just reported net FX flows into Brazil through June 12. In the first half of June, commercial surplus was driving the net FX flows. That surplus amounted to $866 million, which was four times larger than the net financial outflow right now (or $205 million).
The net inflow of $661 million in the first half of June 2009 was better than the net outflow of $143 million a year ago.
Forex traders around the world are starting to recognize the promise coming out of Latin America’s largest economy. And according to Advani, more capital flowing into Brazil is very good news for the Brazilian real going forward.
"Fortunately for Brazil, as China recovers, it has been buying up goods from countries around the world. China started ordering more goods from Brazil in February of this year. Ever since, Brazil’s economy has been improving."
“Brazil also boasts a very wise central bank that has behaved prudently for the most part. With a strong central bank at the helm to control inflation and manage these cashflows. This all will lead to significant strengthening of the Brazilian real. “
According to Advani, this Brazilian real story should continue to play out for several months, as the dollar continues to sink.
That’s why he recently recommended the WisdomTree Brazilian Real ETF (NYSE: BZF) as an easy way to buy the real, right through your normal stock brokerage account.
According to Advani, there is very little on the horizon that will put a dent in Brazil’s growth story. Even if the Chinese growth story stalls a little and the Brazilian orders slow down a bit, the long-term growth prospects in Brazil are tremendously strong.
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