Brazilian currency with respect to the dollar

Brazil linked its currency, the real, to the US dollar in 1994. However, after the East Asian financial crisis, the Russian default in 1998 and the series of adverse financial events that followed, the Central Bank of Brazil temporarily changed its policy. Monetary policy became a managed float scheme while suffering a currency crisis, until the exchange rate regime was finally changed to free float in January 1999.

Brazil received a rescue package from the International Monetary Fund in mid-2002 of $ 30.4 billion, and then a record sum. The Brazilian central bank returned the IMF loan in 2005, although it should not repay it until 2006. One of the problems that the Brazilian Central Bank recently addressed was the excess of short-term speculative capital inflows to the country, which may have contributed to a fall in the value of the US dollar against the real during that period. However, foreign direct investment (FDI), related to long-term investment and less speculative in production, is estimated at $ 193.8 billion for 2007. Monitoring and control of inflation currently plays an important role in the role of the central bank in establishing short-term interest rates as a measure of monetary policy.

Between 1993 and 2010, 7012 mergers and acquisitions were announced with a total known value of $ 707 billion with the participation of Brazilian companies. The year 2010 was a new record in terms of value with US $ 115 billion in transactions. The largest transaction involving Brazilian companies was: Cia. Vale do Rio Doce acquired Inco in a public offer for a value of US $ 18.9 billion.

Corruption costs Brazil almost $ 41 billion per year in 2010 alone, with 69.9% of companies in the country identifying the problem as an important limitation to successfully enter the global market. Local government corruption is so frequent that voters perceive it as a problem only if it exceeds certain levels, and only if a local media, for example, a radio station, is present to disclose the findings of corruption charges. The initiatives, like this exhibition, strengthen the awareness that is indicated by Transparency International’s Corruption Perception Index; Brazil ranked 69th out of 178 countries in 2012. The purchasing power in Brazil is eroded by the so-called cost of Brazil.

Brazil also has a large cooperative sector that provides 50% of the food in the country. The largest health cooperative in the world, Unimed, is also in Brazil and represents 32% of the health insurance market in the country.

Energy

Brazil is the tenth largest consumer of energy in the world, and much of its energy comes from renewable sources, particularly hydroelectricity and ethanol; The Itaipu dam is the largest hydroelectric plant in the world for power generation. The first car with an ethanol engine was produced in 1978 and the first airplane engine with ethanol in 2005.

Recent oil discoveries in the Pre-salt layer have opened the door to a large increase in oil production. The government agencies responsible for energy policy are the Ministry of Mines and Energy, the National Council for Energy Policy, the National Agency for Petroleum, Natural Gas and Biofuels and the National Electricity Agency.

tourism

Tourism in Brazil is a growing sector and key to the economy of several regions of the country. The country received 6.36 million visitors in 2015, classified in terms of international tourist arrivals as the main destination in South America and the second in Latin America after Mexico. The incomes of international tourists reached US $ 6 billion in 2010, showing a recovery from the 2008-2009 economic crisis. Historical records of 5.4 million visitors and US $ 6.8 billion in receipts were reached in 2011.

The natural areas are its most popular tourist product, a combination of ecotourism with leisure and recreation, mainly sun and beach, and adventure trips, as well as cultural tourism. Among the most popular destinations are the Amazon rainforest, beaches and dunes in the northeast region, the Pantanal in the Center-West region, beaches in Rio de Janeiro and Santa Catarina, cultural tourism in Minas Gerais and business trips to the city of São Paulo.

In terms of the Tourism and Travel Competitiveness Index (TTCI) of 2015, which is a measure of the factors that make it attractive to develop business in the travel and tourism industry of individual countries, Brazil ranked 28th world, third in the Americas, after Canada and the United States.