# Brazilian Real is the most undervalued EM currency - IIF - Forex Crunch

> IIF chief economist Robin Brooks says the Brazilian real is the most undervalued emerging market currency, about 20% below his fair value estimate of 4.50 per dollar. The real was near 5.32 per dollar at the time, and is recovering on a current account surplus and improving portfolio flows.

- Date: 2020-11-26 · published 2020-11-26T12:00:00.000Z
- Category: macro · region Brazil · magnitude low
- Page: https://feedsoft.ai/events/50343-brazilian-real-is-the-most-undervalued-em-currency-iif-forex-crunch
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md), [Soybean Meal](https://feedsoft.ai/c/SBM.md)

## Why it matters

A real that strengthens toward fair value would make Brazilian soybeans and meal costlier in dollar terms, which can firm global soy and meal prices. It would also raise Brazilian feed import costs.

## Read by commodity

- SBM: neutral
- USDBRL: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2026-02-26 | [Prime Time for the Brazilian Real - The Bretton Woods Committee](https://feedsoft.ai/events/20794-prime-time-for-the-brazilian-real-the-bretton-woods-committee.md) | +1.5% | +1.6% |
| USDBRL | 2019-01-30 | [In emerging markets, the peso is the best-positioned currency - The Mazatlan Post](https://feedsoft.ai/events/61301-in-emerging-markets-the-peso-is-the-best-positioned-currency-the-mazatlan-post.md) | -1.3% | +0.5% |
| USDBRL | 2025-12-03 | [Brazilian Real Strengthens for 2nd Session](https://feedsoft.ai/events/8058-brazilian-real-strengthens-for-2nd-session.md) | +1.8% | +2.5% |
| USDBRL | 2018-09-28 | [Brazilian currency strengthens below 4 to the dollar: first time in five weeks — MercoPress](https://feedsoft.ai/events/63259-brazilian-currency-strengthens-below-4-to-the-dollar-first-time-in-five-weeks.md) | -1.8% | -8.2% |
| USDBRL | 2022-01-23 | [Foreign investors pare bets against Brazilian real](https://feedsoft.ai/events/43351-foreign-investors-pare-bets-against-brazilian-real.md) | -0.5% | -5.5% |
| SBM | 2025-12-03 | [Brazilian Real Strengthens for 2nd Session](https://feedsoft.ai/events/8058-brazilian-real-strengthens-for-2nd-session.md) | -3.2% | -4.0% |
| SBM | 2019-01-29 | [Brazilian real likely to strengthen further \| Lombard Odier](https://feedsoft.ai/events/61297-brazilian-real-likely-to-strengthen-further-lombard-odier.md) | -0.5% | -2.9% |
| SBM | 2019-06-14 | [Trump threats drive historic Brazil, Mexico currency divergence](https://feedsoft.ai/events/58814-trump-threats-drive-historic-brazil-mexico-currency-divergence.md) | +0.4% | -2.6% |

## Sources

- forexcrunch.com: https://www.forexcrunch.com/blog/2020/11/26/brazilian-real-is-the-most-undervalued-em-currency-iif/

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