Brazil exporters hit hard on Currency Bets.
The two largest Brazilian exporters confirmed a massive currency related loss in profit, investors fled emerging markets and weakened Brazil’s economy – making them the countries first big victims of ongoing financial turmoil.
Short and simply, the profit made by these companies has decreased due to a mixture of sales and Brazilian currency. Sadia SA, one of Brazil’s biggest food companies (exporter of Chicken and beef), said it lost US$406 million on the currency market this year, more than its entire profit in 2007. Brazil’s currency, the real, has dipped 15.5 percent since August 4th, as global financial crisis has prompted investors to flee emerging markets. The net loss is predicted to be more than the net profit after taxes and interest.
The weight of the nations’ respective currency is another critical point of interest in this global market. And it’s the delicate balance between industry, employment, and dollar that must be corrected for an ideal and stable economy.
Miguel. A. Torres.
http://www.iht.com/articles/ap/2008/09/26/business/LT-Brazil-Economy.php
9.26.08 - 2:42 p.m.
1 comment:
It seems as though currencies around the world are all going down in value, this is an example of that.
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