With the Real hovering near a two year low against the dollar I'm thinking of buying some now to lock-in the exchange rate.

Tried my bank, BofA. Current rate is 2.78, they sell at 2.4. Horrible.

Anybody know of a way to get a better exchange rate here in the states?

thanks

ix

It's not 2 year low, it's all time low since real launch in 94. 2.86 today after C Bond benchmark fell 7% on Friday.

Guess you have to take the bad with the good...we get a great rate but lose our asses in the market...all a push really.

Not a push for me, a blood bath in 6 digits figure.

Real is at lowest point since its creation in 1994 primarily due to investors concerns by the country’s large public debt ("now more than 55% of GDP: interest payments account for 9% of GDP") and concerns that the leftist candidate Lula da Silva will win the October election and "abandon the conservative fiscal stance of President Fernando Cardoso and place more emphasis on social spending".

http://www.economist.com/agenda/displayStory.cfm?story_id=1199286

Youngtom:

I'll be in Rio in August. You think its worth trying to get some Reals now as an insurance policy for good rates, or wait til I get there?

It seems that the market concerns you list are not going to be resolved anytime soon. Maybe there's no harm in waiting?

Ixtoc

Who knows what the best thing to do is. But over the last couple of years, it seems that the rate gets better during the off season (goes from about 2.5 in april to 2.8 in November); I believe the brazilian government likes the lower rate during the tourist season (Jan-April). My guess is that the rate will only get better for us between now & August (probably only slightly though).

Here is another article from the Economist where they spectulate that depending on October's election that Brazil might have to default on its public debt.
http://www.economist.com/agenda/displayStory.cfm?Story_id=1177451
In which case, you probably don't want any reais in your pocket.

I don't really think it is possible to get the Brazilian bank rate here in the US anyway; one needs to be in Brazil.

Ixtoc
Why get reals? From the sound of it, another devaluation could happen. Stick to your dollars and convert when needed. Investing in currencies is considered harzardous.

I agree with athos. No need to take that risk ...anything over 2.50 is a bonus. You could also convert into euros

Thanks guys.

Sage advice again. Seems like to best thing to do is wait til I'm there.

I keep dividing the natural garota numbers (150 and 200) by 2.8 and getting all excited. A little over $50 and $70 bucks for the fine garotas you all describe seems incredible.

37 more days til Rio. The anticipation is killing me.

Ix

Ouch---6 figure would hurt one's future retirement to Brazil for sure...but looking from the pics you just put up...money well blooded...help any???

athos, i am swimming with you in that bloodbath brother. don said you were just down there. sorry i missed you. world cup was plain crazy.

ixtoc, is this your first time in rio? if so, enjoy....your life may be ruined.

question: for those of us looking to invest in apts in copa for hombres, what does a possible devauluation or default of debt mean to both the real estate market and rental market. it seems to me that buying when the real is weak, just gives us more value for our us$. but what do i know? i bought enron.

Sonnyp---I take it you did not find your apartment to buy yet? Too busy or too pickey?

Yeah it is cheaper to buy an apartment in Rio than to rent. Somehow rent is high in Copacabana. But then add cost of maintenance...so not sure, ask a local gringo.
When I look at the hobby expenses and the stock market swoon, I feel great :-)

If there is another major devaluation like 50%, then maybe buying a 2 room apartment might make more sense than staying at hotel/apart thing.

You buy - I promise manage your apt. amigo

YT
Sounds good, let me ask my TJ partners. Can you find a pretty housemaid, provide brazilian condoms?

layne,
5 days was not enough time to make a decision and work out the details. everyone i spoke with said something a little different. and yes...it was hard to stay focused on work when its 83 degrees and sunny. plenty of places for sale though in all different price ranges. saw one right in back of help that had unobstructed views of the ocean/beach from living room and master bedroom. 3 bedrooms total. they were asking about120k. i feel you need about3/4 weeks to do it right. us rio freaks should consider maybe going in on an apt. don cant find enough rooms to rent out he is so busy. and this is the off season!!!! hope everything works out with camilla....she sounds like one of the good ones. it would be a shame to she her go back to germany and be treated like shit. though i never met her, i get the feeling she is special. i hope you make it back for dons party.

One other question:

Where should i go to get the best exchange rate once I'm in Rio? ATMs? Banks? Cambio's?

Also

SonnyP: yes my first time. But I only have five days, is that enough time to become completely ruined?

Ix

Ixtoc

As it has been mentioned, exchange minimum at airport maybe $50 to $100.
There is a decent cambio on Xavier next to the Roiss, cambio is a travel agency that doubles as money exchange. Cambios are closed on Sunday.
Best rate is at the Help terrace and Help entrance. It's perfectly OK to order a drink and pay with $100 US. At Help entrance, show American bill and they will usher you inside to give you change.
They also accept Anmerican dollars at Meia but not really sure about their rate.
You can pay bar fine in US dollars at Barbarella but expect to get worse rate.
Never tried banks or atm's.
You can pay at termas with plastic if necessary, Solarium only one with no extra charge.

When you come back, keep your Reals for your next trip so no more airport exchange.

There is a Bank on the third floor of GIG, where you can go and get exchange - It is a long walk though

O'neill annoyed alot of brazilian's yesterday when he said the US/IMF isn't going to give Brazil any money to stick in swiss bank accounts

http://money.cnn.com/2002/07/30/news/international/brazil_oneill.reut/index.htm

And probably the big news at least for us Rio travellers is the the central bank of Brazil is going to sell 50 millions dollar per day in the month of August this will force the exchange down (from today's 3.2 to 1). You'll need to use a translator or know some Portuguese for this one.
http://br.invertia.com/noticias/noticia.asp?idNoticia=647091

so in any event, if I was in Brazil I'd exchange all my dollars tomorrow.

Here's a pretty graph that shows how the exchange rate is up 37% since the beginning of the year (more portuguese - sorry)
http://www.estado.com.br/editorias/2002/07/30/crise.gif

Anybody know how meaningful $50m/day is in terms of the currency exchanged on a daily basis? Will this have a dramatic downward impact?

Oh sorry, just read YT's post better, their goal is to bring the exchange rate down to 1 - 1???

Ouch.

not going to happen...if it were that easy they would have enacted it already...I'd read somewhere that the richest top percentile of brazil has already withdrawn close to 60% of the country's financial coffers, converted them to outside currencies and moved them to foreign banks...they may get the exchange rate down somewhat, but I highly doubt the Real will exchange better than 2 to 1 for the extended future...keep in mind, the upcoming election is the biggest part of why the Real is devalued...until the election is over (october?) there will continue to be instability...

Rexxx is right - they will be able to drive the rate down somewhat (my guess is into the high 2s - 2.8 maybe). During the tourist season, the Central bank does the same thing but generally they don't really sell alot of dollars during the offseason (ie Jun-Oct) but things are looking so bad they are getting worried and trying to get involved now. during the tourist season the rate varies from about 2.2 - 2.6 so I think they just are trying to mask the fact that the next few months (until the election & the debt re-payment is somehow worked out) that there is alot of uncertainity in the market.

I think even with them dumping 50million a day, we'll still end up with a very good rate (ie something higher than 2; probably in the high 2s).

All,

Brazil's Central Bank has actually been intervening in foreign exchange markets for the past two months to little effect. Brazil's problem is basically three-fold: Emerging market debt has been shunned because of problems brought on by the global economic slowdown, exacerbated by Argentina and minor fears of a Latin American "contagion"; the plunging markets in the USA cost people a lot of money -- money that normally would have been invested in emerging markets as a global hedge; and Brazil's insanely high interest rates (18%, I think, after the rate cut last week), which help ward off inflation but stifle any chance at economic recovery. Brazil's high debt ($250 billion) in relation to its GDP is certainly a factor, as well. What's the old adage: Bankers want to sell you umbrellas until it rains. As bankers get nervous, they withhold loans or charge exorbitant rates. Countries get caught in a downward spiral of borrowing at high rates to pay off previous loans that eventually causes a debt default. Same thing happened in Argentina, except the currency peg exacerbated the effect. There is hope for Brazil, but no one is going to lend them a hand until the elections are settled or there is a meltdown.

Duckman - it would be great if you could hang with us & keep us informed on this & school us on the whole thing.

I don't really understand the nits of the finacial world - I really wish that things would remain stable as they have been for the last couple of years. If the REAL crashes then many will say "this is great, etc" but I don't agree with that. Crashing or hyper-inflation creates alot of problems with crime, etc.

7/31/02

Moeda Venda Var.%
US$ Comercial 3,5700 +8,18
US$ Turismo 3,4000 +2,41
€ Turismo 3,3600 +2,78

Real losing more value against the dollar. We'll see what happens tomorrow when the central bank steps in.

duckman:

great synopsis of what is happening in brazil! i concur that the exchange rate will not get better any time soon especially with the somewhat strengthening USD - today's rate at around 3.4 to 1!

YT: I totally agree with your viewpoint. If the Real drops too far, inflation will soar -- and that includes garota prices. I know all of us want to get as much bang for the buck as we can (pun intended), but we want to be able to monger in as safe an environment as possible. Plus, I just don't like to see poor people get reamed, because they are the ones who pay the highest price in currency devaluations.

As of early today, the Real had dropped to 3.6 to the dollar, which means it's coming under more pressure than previously thought. The good news is that Brazil is saying they will have an interim financing package with the IMF in place by Aug. 12, so that could stabilize things a bit. I'm still guessing a 3.5 rate by the middle of August, although that could be closer to 4, depending on the IMF package. To clarify my earlier point about Brazil's central bank intervention, they spent $1.5 billion in July to prop up the Real.

Ducky

From news wire:

SAO PAULO, Brazil, July 31 (Reuters) - Brazil's embattled currency, the real , came off a record low of 3.605 per U.S. dollar soon after midday on Wednesday after the central bank sold dollars in the market, traders said.

Still, the real was trading at 3.450, down nearly 4.5 percent from Tuesday's record closing low of 3.295.

"It appears that the central bank decided to act. But the market still continues without any liquidity," said a currency trader.

The currency has been pummeled this month given a short supply of dollars in the foreign exchange market as companies, unable to roll over their debt abroad, seek dollars in the market to pay it off. The lack of funds has been magnified by worries about the outlook for October's presidential election.

The central bank announced on Tuesday it would spend $1.835 billion in the foreign exchange market next month to shore up the currency. It has been injecting $50 million a day since the start of July and plans to continue doing so through August.

guys:

the currency rates qouted above and those at the various internet converter places provide qoutes based on the currency markets and do not necessarily reflect what guys like you and you actually get when going to an exchange counter.

what is the typical discount you have seen when comparing the market qoutes above and those you got when in rio (help and other places)?

going to Rio at end of October....wish there was a way I could lock in some of my funds now. The best rate I got quoted today was 2.55

Khunjbl. What are you trying to do? Guarantee the remainder of your life? I bet you are one of those guys that believe in Social Security. I know, you are 19 and are going to get $20,000 / month when you retire at age 32. Even if the Real were 1 to 1, at $R150, you garota would be bettern then anything you could get in the US.

Get real, and just go to Brazil, and see what happens.

Quit trying to decide is the next time you go to the bathroom it will take 3 tissues or 4 tissues. You just cannot plan your life that far in advance.

CP: Don't be so harsh on poor Khunjbl -- although you did make me laugh almost hard enough to blow beer through my nose -- ouch! :-)

Crafter: You're right about the exchange rates -- the rates quoted in major papers/etc. is for large transactions on the currency exchange market. But it's a reflection of the rate you can reasonably expect to get on the street. Sometimes you will get a better rate, sometimes you will get a rate that's a little worth -- it all depends on what's happening on the market at the time, and it can literally change in seconds.

Either way, I think anyone going to Rio before the October elections is in for a good exchange rate -- but let's hope that the economy doesn't suffer too much or inflation will skyrocket, along with garota prices...

Ducky

dman:

thanks for the explanation - did not know that the qouted rates and those that one actually can get are pretty close - great news.

i agree that if the rate falls further inflation will set in - that is basic economics. in any event, any rate between 2.5 and above is a steal especially given the quality and experiences.

No need to insult me. I am a equity trader and I am just trying to do what comes natural and hedge. I know that you fart dust but no need to be so bitter..just take Viagra ..
later

No pun intented. You just cannot guarantee garota prices. Who knows, you may fall off the turnup wagon for a lady that wants $600 / US for the evening.

The $600 US may be worth more then the quoted price of $R 2.75 because you have better chemistry, or whatever.

Just quit trying to plan your life so far out.

Beauty is in the eyes of the beholder.

You get what you pay for. Quit trying to plan your trip. Pay what you think it is worth when you see the merchandise.

CP

Khunjbl, I know a guy at Merril Lynch that will give you $R 1.75 or 2.00 Argentine pesos to the dollar for the for the next year.

This may be the best guarantee you will year.

You could also get Lula Sila to give you $R1.00 to the $1.00 US on 1 November 2002 if you want.

Another good place for guaranteed price quotes is on the corner of Rua Alantic & Rua Sao Francisco. There is a guy there at 3:14 AM Grinnich Mean Time every morning that usually has some pretty good deals also.

CP

PS: Have fun.

Jesus, you need to chill out dude...just because you're super vet, uber monger, don't dis the newbies (of which I am one)...the point of this forum is to ask legitimate questions and ideally have them answered tactfully and with substance...remember, there are no stupid questions, just stupid people who put down the questioners...

canonperdildo,
You make it seem as is I am some cheap charlie worried about 10 or 15 dollars and what garota I can find for the cheapest ....are you just trying to make shit up or what??? I don't need some one talking down to me. Save your ego for the garotas they might believe you! BTW, I always have fun becuase I plan ahead ( never knew trying to change currency to lock in a incredible rate is the same as planning my life ..thanks for the lesson oldtimer) I will think of your wisdom and advice as I enjoy myself at a terma ...PLEASE YOU REALLY NEED TO GET REAL YOURSELF.
If you do not want to help newbies then just shut up and keep your hands in your pants.
Later P.S. have fun

You take things a little too seriously Khunjbl. You are probably a really smart guy. Sorry if I offened you.

CP

aahhhhh...me feel the love coming back.

/group hug

U.S. Says It Backs Bailouts for Brazil and Uruguay Only
By RICHARD W. STEVENSON
New York Times

WASHINGTON, Aug. 1 — Just days after suggesting that he would oppose new financial aid for battered South American economies, Treasury Secretary Paul H. O'Neill signaled today that the United States was now willing to back bailout plans for two of the hardest-hit nations, Brazil and Uruguay. But he pointedly left out a third, Argentina.
Advertisement


Mr. O'Neill, whose comments on the financial troubles in Latin America over the last month have upset financial markets and set off a diplomatic tiff with Brazil, used a news conference here today to mend some fences.

Sticking carefully to scripted remarks, unlike many previous occasions, Mr. O'Neill praised Brazil and Uruguay for pursuing sound economic policies, and offered some encouragement but no new help to Argentina, whose economy fell into a swoon late last year after several years of economic struggles. The Treasury secretary leaves for a swing through South America on Sunday.

"I continue to favor support for Brazil and other nations that take appropriate steps to build sound, sustainable and growing economies," Mr. O'Neill said.

His comments suggested that the United States would not block Brazil's efforts to negotiate a new package of loans from the International Monetary Fund. Plagued by growing questions about its ability to repay all its debt, and with its currency plunging in value, Brazil — South American's largest economy by far — has struggled in recent weeks to avert a full-scale economic crisis.

Brazilian officials arrived in Washington this week for talks with the monetary fund. Thomas Dawson, the fund's spokesman, told reporters today that it was in negotiations on an "active, urgent basis."

The positive signals from the Treasury Department and the fund helped Brazil's currency stage a strong recovery today. The currency, the real, was up nearly 10 percent, after losing nearly a third of its value this year.

Mr. O'Neill said he planned to assure Uruguay that he would support new assistance to help reverse a sharp economic deterioration in that country. Thousands of workers staged a four-hour strike in Uruguay today, the third day in which banks there have been closed.

"Uruguay deserves the ongoing support of the international financial community for its commitment to sound economic policy," he said.

But Mr. O'Neill offered no such assurances of support for Argentina, which the Bush administration views as having mishandled its economy. He hinted that the United States does not believe Argentina has yet taken all the necessary steps to bring its budget deficit, debt and currency under control.

Since taking office, the administration has looked skeptically on bailout packages for struggling nations, saying it is a waste of taxpayers' money to pour aid into nations that cannot, in the long run, repay all their debts.

It has been under increasing pressure, however, to help in Latin America, where after years of movement toward market economies and democracy there is a growing popular backlash against stringent economic policies.

The American stance toward the region's problems has been complicated by bad feelings set off by comments made on Sunday by Mr. O'Neill. Asked on Fox News Sunday about aid to the region, Mr. O'Neill said he would not be bringing any offers of help with him on his trip.

He said aid would be forthcoming only after Latin American nations could assure that the aid "doesn't just go out of the country to Swiss bank accounts."

President Fernando Henrique Cardoso, enraged at the implication that his government was corrupt — something Mr. O'Neill's office said he never meant to imply — said he would not meet with Mr. O'Neill unless he retracted his statement, according to reports in the Brazilian news media. Brazil summoned the United States ambassador to lodge a protest.

The reaction from Brazil led the White House to offer conciliatory words on Tuesday, and Mr. O'Neill offered more today.

Don't look now.

The Real is 3.752 to 1 against the dollar.

Time to get there. Who know where it will be in a couple of weeks. Anything better than 2 to 1 is Cheeeapp.

Anyone know what the current approximate xchange rate is? I'll be going down @ the end of May for the first time and am starting my research.

Aprox R$2.85 to the dollar, it's been relatively stable for the past few months in the 2.80-2.90 range.

BS

2.01 is the rate today!!!! Yippie :-)

Looking back thru the previous/older threads it's simply amazing that we are all happy it finally hit 2 again. What a difference from when we all started coming here, no wonder we are so jaded on pricing!

Back then, life was wonderful...prices low and everything affordable. Aye, once it hit 1.6 and less along with the inflation in Brazil it certainly started to get painful. But I win on one side and lose on the other. I get less money for things I bring from the US to sell, but get more for my paycheck.

It is great to be able to divide things by two again!!!!! A typical dinner of R$30 just dropped by $5.00USD in just a few weeks

I just checked xe.com and at this exact moment the real is at 2.04

Copperfield,
When I first visited Rio, the rate was 1.7

What most guys who first visited in 2002-2004 don't realize is that the rates at that time were exceptional. The rates right now are actually more the norm (if there is such a thing in FX rates).

Elgran,

Wasn't entry and a cabine and garota at L under a hundred Reals back then as well? And I don't think lunch at Kilograma would have set you back R$22 either.

Inflation is much more noticable in Brazil. It seems every few months the taxi's minimum rates go up, the bus & metro gets more expensive, and restaurants as well. Some of my favorite drinking holes have also been ever so slowly increasing prices as well... a dime here, 50 cents there... In the end if you add it all up it does become quite expensive.

I think Rio in general is probably one of the most expensive cities to visit.

Quite honestly I do not how the average Brazilian that is not middle or upper class can survive on their measly salary. It is basically a life doing without.

I have a few Brazilian friends that go out to various clubs with me.... chances are that most of the time they drink nothing, or can't afford the entrance fee because they are broke.

Brazil is an emerging market, but it certainly has not trickled down to the average Brazilian.

Lets just hope the dollar stays up!!! I have been making bank runs the last few days withdrawing money at the higher rate...

Just a little while ago R$1000 was costing about $620USD, now it is almost $500!!! Nice change

Catocony,
Absolutely. That's the reason 02-04 was such a unique time for Mongering in Rio. The Real had been pounded to crazy levels by fears over Lula, yet inflation had not yet taken hold.

My point was that guys who first went down in those years have an unrealistic expectation for mongering costs in Rio. What they experienced then is not going to happen again for a long time, if ever.

There are still inexpensive mongering locations, but Rio is not one of them and won't likely be again.

I was down there not too long ago when it was 1.6 to 1, so 2 to 1 is like a 25% improvement? Not too good at math, but that should be close. Although I was down there in the 3.6 to 1 days, I know those times are gone and I am just happy to know that they are having a 25% off sale on all Brazilian sex!

Jigettis -Great perspective!!!!!

The reality is that Brazil is not the cheapest place, but it certainly ranks up there with getting the most bang for your buck.... quite literally.

I think outside Thailand and Indonesia, it is not even worth considering anywhere else then Brazil. The average all night prices still range in the R$200 - R$300 (for those not too good at negotiating), which now averages out to $100 - $150 USD. Not really all that bad for some great all night pussy.

Marv:

Haven't been to Columbia, but it sounds like the pricing is low and the hottness of the women (in looks and performance) is high.

But yeah, Indo is one of my favs. I like the way the girls look and the pricing below $50 for a quality session is right. Haven't quite figured it out in my visits how to get the full range of Rio performance.

WOW!! 2.14 at this moment... Even the Indo Rupiahs is up to 9592.

The worst it got in Indo was like 8500 to 1? So a $35 session became, what, $42. Oh, please don't throw me in that briar patch!

Damn, I went to JKT last month. And came back with 900K Rupes leftover in my pocket.
Which I hope to use next month?

It finally crossed 2.0 today.

Is anyone besides me watching this? It's close to 2.05 now. It's one third stronger over the past ten months!

The cambios are giving 2x1. Monte Carlo, on Saturday, quoted 1.90. The ATM gave me the Friday close twice. US$398.25 for R$800, so the 2.01 or so rate.

On the other hand, prices are still sky-high, so I'm not feeling a discount at all. It's better than 1.75, but to get to where prices, per dollar, were when we all started coming down here 10 years ago, the Real would have to go at least 5x1.

Yeah, true for sure but still a massive move in the right direction. We were at about 1.54 last summer.

Indeed! The pussy that cost me $160 last summer now costs $122.

Do I hear 2.5 to 1?????

Ultimately the goal of Brazil's Finance minister is to keep the dollar higher against the Real. So far they are succeeding. They want the dollar to stay in the 1.85-2.00 range....

If they're smart they'll let it go to 2.5 to stop all the Brazilians from traveling to the US to spend their money and to encourage the Americans to come to Brazil and spend their money.

2.09 really ain't bad. Moving faster that I expected this week. 2.5 would really be awesome.

Don't think it will go much further in the short run. Brazil will pull out the stops to defend the real soon. The problem for them, though, is currency investors are worried about the real, because of a weakening of demand in China (Brazil's largest trading partner) and Argentina (their 3rd largest partner).

I booked my 1st trip to Thailand because of the crappy exchange rate.......WTF....8 more days til Pattaya and Phuket.....2.09 damn....saudades Brasil....rsrsrsrs

I arrive Friday. Keep going baby!

So it 2.09 this morning, but closed at close to 2.03. That's a pretty big move in one day, and no one knows where it will be tomorrow. I got 2.05 at an ATM around 3:30 PM Rio time,