High dollar makes spending by Brazilians abroad be the lowest in October for 3 years

The high dollar made Brazilians fearful when traveling abroad or shopping in other countries. At least, that is what the data released by the central bank this Monday, the 25th. From 2016 until now, this was the October in which there was the least expenses of Brazilians abroad. This year, the total expenditure amount for that month was US$ 1.421 billion. In the same month, 2018 spending was US$ 1,603 billion and 2017 spending was US$ 1,636 billion. Even though the dollar was cheaper at the end of October (R$ 4.15) than at the beginning (R$ 4), the currency continued to be more appreciated against the real.

More data on the decrease in spending by Brazilians abroad due to the high dollar

In order for you to visualize even better how Brazilians' spending abroad has decreased, it is also worth presenting other data. If we compare the first ten months of 2019 with the first ten months of last year, we will see a decrease of 4% in these expenses. If this year, US$ 14.849 billion was spent, last year the figure was US$ 15.478 billion.

This Monday, the 25th, around 7 pm, the value of the dollar was R$ 4.23. As such, the US currency is up compared to the end of last month (R1TP4Q 4). With that in mind, the chances of Brazilians continuing to avoid trips abroad are great.

It is worth remembering that, if the dollar is expensive, you need to spend much more money to pay for plane tickets and hotel rates. Food, clothing and souvenirs are also more expensive. Therefore, people end up postponing their trips and preferring to visit other destinations.

It is also important to point out that spending by foreigners in Brazil is also lower. According to data released by the Central Bank, in October, the total amount of expenses for these people was US$ 442 million. In the same month last year, foreigners spent US$ 456 million.

However, when a longer period is observed, a small increase is noticed. In the first ten months of 2019, the amount spent by these tourists here in Brazil was US$ 4.972 billion. Already last year, they spent US$ 4.968 billion in the country.

It can be said that one of the reasons for this increase was Jair Bolsonaro's decision to encourage tourism in Brazil. Earlier this year, he signed a decree allowing tourists from the United States, Japan, Canada and Australia to enter the country without needing a visa.

Final considerations

That said, we News Report we hope we have clarified why the spending by Brazilians abroad are the smallest of the month of October for 3 years. The appreciation of the US currency against the real has made Brazilians spend less. With that in mind, comment if you postponed a trip because of the high dollar. Also, be sure to follow our website for more economic news.