Guidelines for Investing In Brazil

The anomaly of banks in Brazil on January 5th, 2015 left people scratching their heads. The economy of Brazil was troubled at the end of the year, but banks are suffering along with troubling economies. There is no economic growth under Dilma Roussef’s populist strategies. Brazilian banks are facing a storm, and they need to whether to thrive.

Igor Cornelsen is a Brazilian investment expert. Igor thinks that the secret to helping Brazilian banks is knowledge and experience. Brazilian bankers who are in the private industry lend money to most creditworthy borrowers. It streamlines costs and gives banks a sense of security. That means that a person who has less desirable credit can only focus on public sector banks.

In such an uncertain time, investors are still interested in investing in Brazil. Brazil has natural resources and the increasing demand for infrastructure development to support the booming population in the country. Brazil provides a more attractive market in South America. Igor advises people first to look into the investment to ensure they know the basics before they invest. Here are basics of Brazilian banking, as given by Igor.

Brazilian banks have ten main players

Brazil has the leading economy in South America, and it is the eighth largest in the worldwide on Ten major privately and state-owned investment and commercial banks back up the powerhouse. Some notable investment and commercial banks are Banco J Safra, Banco Bradesco, Banco Itau and Caixa Economica Federal.

A fresh face can turn things around

Guido Mantega came up with a new economic matrix which was a complete failure. According to Igor Cornelsen, the model was based on ideology rather than rational economics. Joaquim Levy is the new finance minister, and he brings hope for banks in Brazil. He is seemingly going to turn the face of banks in Brazil around.

The real value of the real

Brazil has had an overvalued currency for several years. It has made industrialized exports goods to lose competitiveness, which has caused huge account deficits. The Central Bank of Brazil sold dollar swaps in local markets for the last two years. They sell dollar swaps to prevent fast depreciation of the real.

Pay attention to China

The country’s largest trading partner has economies that are intrinsically linked. Stronger Chinese economy means that the prices for Brazilian raw materials will be good. When investing in a country, you need to look at their trading partners too. Igor Cornelsen explains the importance of keeping an eye on markets gives you the chance to understand of your investment, which earns more profit.

About Igor Cornelsen

Igor Cornelsen gives advice to investors who are looking for somewhere to invest. If you are searching for a country to invest in or you want to invest in Brazil, consider consulting Cornelsen. Cornelsen is a Brazilian investment manager.

Learn more about Igor Cornelsen:

Guidelines for Investing In Brazil

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