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You buy food in BRL yes, but when the BRL has a massive swing up or down food prices can swing the opposite way to compensate. If BRL drops 30% and food prices
by ukoki 10y ago
You buy food in BRL yes, but when the BRL has a massive swing up or down food prices can swing the opposite way to compensate. If BRL drops 30% and food prices rise 30% you're going to be in a bad situation — dollars are likely to be far more stable
- cesarb 10y agoThe packaging for every food has the manufacturing location printed on it, and almost every one I've seen is produced somewhere in Brazil, often in a nearby state. So, it's the opposite: the price for the food I buy has a greater chance of tracking the BRL than the USD. Fuel is also produced locally (by Petrobras). And when the food prices do increase, consider that the food price is a big component of the inflation index, so both IPCA and later SELIC would rise to compensate. The pain point is electronics. Almost all of it is imported, or has imported components. That one does tend to track the USD.