Is it worth exchanging Australian dollars for Brazilian real right now?
If you’re curious about how much Brazilian real an Australian dollar will buy, there’s good news: The Australian dollar is currently quite strong against the Brazilian real.
Today’s mid-market rate
The mid-market Australian dollar–to–Brazilian real exchange rate is 1 AUD = 2.38 BRL. (Rate accurate as of March 10, 2017.)
How does the Australian dollar trade against the Brazilian real historically?
The Australian dollar (AUD) is strong against the Brazilian real (BRL): whereby 1 Aussie dollars buys about 2.3 reals.
The Australian dollar is the fifth most traded currency in the world, and the real is among the most actively traded of emerging market currencies.
The Brazilian real was introduced in July 2004 as part of a substantial monetary reform package to put an end to three decades of aggressive inflation. However, it’s since undergone a devaluation of more than 20% due to economic crises and insufficient currency inflows.
If you’re exchanging Australian dollars for Brazilian real, a stronger dollar is good thing — it means you can buy more real.
Exchange rate history: Australian dollar to Brazilian real
Using historical data to forecast the AUD/BRL exchange rate.
The past can be a good indicator of the future. We’ve put together the annual average exchange rate for the Australian dollar against the Brazilian real from 2007 to 2016.
|Year||AUD = BRL|
Here’s the monthly average exchange rate for the Australian dollar against the Brazilian real over the past 12 months.
|Month||AUD = BRL|
What affects AUD > BRL exchange rates?
Factors that affect how any currency trades against another are sociopolitical atmosphere, prices and inflation rates, foreign trade and monetary policy and export-to-import price ratios.
Less aggressive factors are consumer confidence about the economy and economic growth, the strength of other currencies, investor speculation and day-to-day news about natural disasters, elections and new government policies.
Here are a few factors that affect the value of the Aussie dollar specifically:
- Commodities and output. Australia’s economy is driven by production of metals and grains, as well as reports on its crops and harvests.
- Exposure to Asia. A resources boom in China, India and Japan has pushed the Aussie dollar high — too high for some speculators.
Here are a few factors that affect the value of the real:
- US interest rates. The Brazilian real is sensitive to changes in US interest rates that affect how foreign investments in emerging markets.
- Policy changes in Asian countries. Brazil extensively trades with Asian countries like China, which means that its currency is affected by commercial policy changes in those countries.
If you want to predict where the currencies are headed, consider this fact: The value of a currency is heavily related to the strength of its country’s economy.
The Australian dollar is expected to stay strong against the Brazilian real, especially as Brazil’s government threatens taxes and further cuts spending in 2017.
When exchanging Australian dollars to Brazilian real, find a provider that offers two-sided quotes to understand the spread they charge. If they show you only the buy or sell rate — but not both — consider looking elsewhere. Ultimately, the closer you can get to the mid-market rate, the better the deal.
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