# Rise in capital inflows may not endure in Brazil

> An expert briefing says the real rose from about 5.7 per dollar in late December 2021 to about 5.01 on February 23, the day before Russia invaded Ukraine. It argues that rising interest rates, commodity prices and cheap Brazilian equities drew capital inflows that may not last. A reversal is likely to be driven mainly by international factors.

- Date: 2022-03-31 · published 2022-03-31T12:00:00.000Z
- Category: macro · region Brazil · magnitude low
- Page: https://feedsoft.ai/events/42473-rise-in-capital-inflows-may-not-endure-in-brazil
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md)

## Why it matters

If capital inflows reverse, the real could weaken, raising the cost of dollar-priced feed ingredients for Brazilian buyers. The outlook is uncertain, so the price implication is mixed.

## Read by commodity

- USDBRL: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2020-02-14 | [Brazil's FX intervention may give respite - NYK Daily](https://feedsoft.ai/events/54783-brazil-s-fx-intervention-may-give-respite-nyk-daily.md) | +1.2% | +10.0% |
| USDBRL | 2025-02-03 | [Trump's tariffs raise fears Brazil's central bank is out of step on inflation](https://feedsoft.ai/events/26256-trump-s-tariffs-raise-fears-brazil-s-central-bank-is-out-of-step-on-inflation.md) | -0.9% | +0.8% |
| USDBRL | 2021-02-26 | [Brazil intervenes in FX markets to arrest real's fall — Octa](https://feedsoft.ai/events/48851-brazil-intervenes-in-fx-markets-to-arrest-real-s-fall-octa.md) | +1.4% | +2.6% |
| USDBRL | 2017-01-18 | [Brazil says not worried about strong dollar as rate cuts intensify](https://feedsoft.ai/events/73177-brazil-says-not-worried-about-strong-dollar-as-rate-cuts-intensify.md) | -1.2% | -4.7% |
| USDBRL | 2018-12-24 | [Brazil: Slower GDP growth in Q4 - Rabobank - Forex Crunch](https://feedsoft.ai/events/61766-brazil-slower-gdp-growth-in-q4-rabobank-forex-crunch.md) | -1.8% | -2.9% |

## Sources

- doi.org: https://doi.org/10.1108/oxan-db268313

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.