I suppose now would be great time to go to Brazil since 100 Reals ( the going rate for sex in Brazil) equals about 39 U.S. Dollars.

Wes - you are absolutely right. The prices really are great. Non-discounted airfares are still expensive to Brazil but if one finds an airfare sale then a trip to Rio is hard to beat (pricewise). All the major airlines had their summer airfare sales ( about $600-700 to Rio) that were good until October-Early November; I think most of these sales have ended or are at least winding down.

I am still working on the airfare, but I found a hotel. The Hotel Debret has a deluxe ocean view room for R148 ( $57 ) and the joiner charge is R30 ($12). Will update my progress later.

What is up with the declining dollar? Isn't the Iraq war going well and the U.S. stock market about to rebound. I am planning my 2nd trip to Rio in June and I noticed that the U.S. dollar keeps dropping against the Brazilian real. Back in Jan I was getting around 3.5 usd against 1 real. Now it is 3.22 against 1 real and appears to be trending down. Can someone explain to me what the hell is going on. Sorry about my bitching but I am a person with modest means that has to save for my mongering trips. I don't want to be priced out of the game.

Maybe it's because of the drop in GDP and increase in the unemployment rate.

The dollar is dropping against all currencies not just the real. The change has been substantial in the last 30 days. In addition to the macro economic factors in our economy pointing south, it appears that our government's demand for foreigh currency will increase as we try to figure out how to pay for this war.

BT

One event that would make the dollar rise if we get to keep all of that Iraqi oil to ourselves.

Thanks B.T. you seem like a very knowledgeable person. I know it is hard to predict the future, and you are probadly not a currency expert but how much do you think the U.S. dollar can go down against the real? Also is it possible it could go up? I was reading some Rio posts from way back ( on another mongering site) when the exhange rate was almost 1 to 1. Imagining going to Centaurus and paying 300 usd dollars. Villa Mimoza here I come!

I am no expert but dollar will stabilize after the war is over. Too many countries are depending on exports to the USA. Real was 2.5 just a year ago in May. Anything above 3.0 is gravy.

Athos is right. It'll stabilize out in a month. I don't think it's go below 3.0 for any length of time, probably it'll settle down just about where it is now 3.2-3.3ish. As the other guys noted, what you are seeing is weakness of the dollar, not strength of the real. Unfortunately, the macro-economic forces that can hurt the U.S. Dollar - tightening of international money markets, high oil prices, interntional uncertainty - will effect the Brazilian Real just as much... in other words, the exchange rate won't change much in either direction. The current drop from 3.5 to 3.2 isn't really a lot either...

BS

I'm glad, as I would hate to go back to 1:1. I've been there, and it hurts.

Moondog

Reals vs the dollar can be seen here:

http://finance.yahoo.com/m5?a=1&s=USD&t=BRL&c=0

CP

CP, Thanks for the link.

Moondog

Thanks, my fears are over as long as the real will hover around 3. No need to get a second job. Since we are talking about money can anyone tell me when you use your atm debit card does your U.S. home bank whack you with a fee? My bank uses the Cirrus system. Does the atm machine that you use in Rio also whack you with a fee? If there are fees is it still worth it to use it to exchange money? Also if you don't want to use an atm card where is a good cambio that gives a good rate. When I was in Rio I always use the travel agent/cambio directly across from Bobby's office. They printed the exchange rate on the window with no fees.

I get hit with a $5 fee everytine I use my ATM card, thats for EVERY transaction. For instance, if I withdraw 1000R ($5fee), if I check my balance ($5fee) if I then withdraw another 1000R ($5fee) get the point.

I have a Mastercard ATM/POS/Debit from a credit union, my card gives 5 free international withdrawls and $1.50 after that.