Dollar Rate Today | FinanceOne #DolarNews

What influences the price of the dollar today?

Some factors can influence the price of the Dollar, and to understand them, the main concept to keep in mind is the law of supply and demand. In other words, the more people in the financial market want the currency, the more valued (expensive) it becomes.

That’s why political and economic factors in a country tend to have a lot of influence. Because they will attract or drive away foreign capital, causing the currency to enter in greater or lesser quantities.

In practice, we can highlight some of these factors:

• as interest rates;
• inflation;
• international tourism;
• the trade surplus or deficit, among other factors.

The Central Bank can intervene with practices to balance the value if it deems necessary. For example, if you think the currency price can harm the Brazilian economy, it is authorized to hold auctions and purchases to interfere with demand and supply. In this way, the price is impacted.

How the dollar exchange rate works

The exchange rate for the US dollar works based on floating exchange rates, a type of regime in which a given currency can fluctuate in value according to the mechanisms and movements of the economic market.

This means that all these fluctuations that we are used to seeing as the rise or fall of the dollar, pound sterling, euro and even the real are linked to this floating exchange rate policy.

This fluctuation occurs as a result of market variations, such as supply and demand, inflation, interest rates and others.

Therefore, when we carry out the quote it means that we are checking the value of the North American currency in relation to another currency. For example, if the price is R$4, it means that US$1 (1 dollar) is worth R$4 (four reais).

In other words, the quote works according to the rate of the exchange. It is the exchange rate that will define how many reais are needed to purchase a dollar.

What are the types of quotation

There are two types, the quotation commercial dollar and tourism.

The mechanism, that is, the factors that will influence the price of both types of currency, are the same. The logic doesn’t change.

But it is important to understand that they are two different quotes. Therefore, prices also change.

There is still the parallel dollarwhose value results from purchases and sales in locations not authorized by the Central Bank.

What is the difference between commercial dollars and tourism dollars?

The value of the trade dollar is used to set market rates. The tourism dollar is the physical currency, traded in exchange offices and foreign exchange correspondents.

In practice, the differences are as follows:

Commercial dollar It is the currency traded by companies and financial institutions and used to pay for imports and exports.

Because it is negotiated by financial institutions, it ends up being a little more affordable than the tourism dollar. After all, these companies move a larger amount of money (remember the law of supply and demand?). The value of the trade dollar is also used to set market rates.

Tourism dollar It is the currency purchased by individuals when traveling, for example. It is also used in exchange offices and banks.

It has the highest value due to the amount of money moved by an individual. Furthermore, institutions that sell tourism dollars tend to pay more taxes.

These are the costs that make it possible for the money to be in your hands: transportation, storage, security, etc.

What is a parallel dollar?

This is what dollars traded illegally by money changers, exchange offices not authorized by the Central Bank and other non-regularized means are called.

O parallel dollar circulates on the underground market. Therefore, whoever operates it is subject to the sanctions provided for by law.

The person can be accused of three crimes: tax evasion (penalty of 6 months to 2 years in prison), currency evasion (2 to 6 years) and money laundering (3 to 10 years).

Furthermore, there are security risks, scams, counterfeit bills, among other problems. And those who trade this currency are still contributing to illegal trade, money laundering and trafficking.

What makes the dollar rise or fall in relation to the real?

There are several factors that can make the dollar rise or fall in relation to the real. But we can say that the three main reasons are:

• Non-external expenses: When there is a high number of Brazilian tourists in the United States or another territory that uses the dollar as a commercial currency, a greater demand for dollars to spend abroad is created.
• United States interest: When US interest rates rise, there is a natural tendency for investors in Brazil to take their investments there. After all, the income will certainly have a better return.
• Trade balance deficit: When Brazil imports more than it exports, the supply of currencies decreases, which increases its value.

Other than that, the economy is forged through the country’s scenario.

An example is when there is political turbulence. At these times, investors tend to withdraw their investments to another, more economically stable location.

So there is a complete understanding of the country’s current situation with the value of the currency.

When is the right time to buy?

The right time to buying dollars is when its value is falling. But it turns out that the currency is constantly rising, compared to the real.

So you need to watch the news and follow the dollar exchange rate today on FinanceOne.

Furthermore, if possible, buy your dollars little by little. Many experts recommend that you buy a little each month. At this frequency, you increase the chances of coming across a perfect falling moment to buy.

After all, every month companies buy dollars to pay their expenses in that currency. And soon after these payments are made, demand drops. Consequently, the value also decreases.

How and where to buy dollars?

The dollar can be purchased in kind (paper money) or in credit and debit cards. It is possible to purchase it both at banks and exchange offices.

The difference is that in exchange offices, the value of the fees are already embedded in the value of the tourism dollar sale. In banks, the charge is separate.

+ How to withdraw Dollars and Euros in Brazil

How to sell dollars?

It is also possible sell dollar nas exchange officesbanks, brokers and institutions authorized for such transactions.

Before deciding which method you will use, do some research to understand which company offers you the best prices and rates.

Also know that, in this operation, you will inevitably lose money one way or another. After all, the Real is a currency that is more devalued in relation to the Dollar.

What taxes are currently levied on the dollar?

The main tax levied on the dollar at the time of purchase is the Tax on Financial Operations, the IOF.

It is a tax charged by the Federal Revenue of Brazil on all credit, exchange, insurance, etc. transactions.

Although it is not a tax, it is worth mentioning the operating fee here, the amount that institutions and exchange offices usually charge when exchanging currency. It can cost more than R$60.

How much is the IOF on the dollar?

Normally, the daily IOF rates are as follows:

• 0.0082% (annual rate of 3.0%) for individuals
• 0.0041% (1.5% annually) for legal entities (companies)

However, until the end of 2021 these rates are higher. This is because of the increase in IOF decreed by President Jair Bolsonaro in September this year.

Thanks to this decree, from September 20th to December 31st, 2021 the rates are:

• 0.01118% (annual 4.8%) for individuals
• 0.00559% (2.04% annually) for companies

How does the dollar impact your life?

The dollar works as a kind of “exchange rate anchor”. This is because it is taken as reference for the currencies of other countries (including the Real, Brazilian currency).

That’s why the quote is not only important for those who are going to travel or invest in foreign capital. The relevance of currency worldwide is such that its value impacts various aspects of everyday life.

To begin with, most international transactions, such as import and export agreements, are made in dollars. Therefore, several relationships can be drawn between the exchange rate and domestic prices.

As a result, a large part of the products we consume in Brazil are directly or indirectly impacted by the exchange rate of the North American currency.

We can think of imported goods, such as cell phones, cosmetics, food, etc. But also the bread from the bakery on the corner, whose raw materials for manufacturing are imported.

There are also other consequences, such as changes in fuel prices, job creation, inflation and, of course, your investments.

Why did it become a global currency?

The dollar was not always a global currency reference. Until the last century, for example, pound sterlingthe currency used by England, was the reference for this.

But with the World Wars, the United States gained ground in foreign trade. Mainly with World War II, as the USA became a world power and helped to rebuild post-war Europe and Japan.

Experts explain that even if economic crises arise in the United States, as happened in 2008, the country will hardly lose this space and the value of the dollar as the world’s currency.

Which countries use the dollar today?

Currently, around 19 countries use the US dollar as their country’s official currency. Outside the United States, there are:

• Puerto Rico;
• Panama;
• Ecuador;
• Somalia;
• El Salvador;
• Turks e Caicos;
• Zimbabwe;
• Guam;
• US Virgin Islands;
• Palau;
• Timor-Leste;
• British Virgin Islands;
• Marshall Islands;
• Samoa Americana;
• Federated States of Micronesia;
• Northern Mariana Islands;
• Caribbean Netherlands;
• Bonaire.

Other countries also use the value of the dollar to carry out transactions, as it is a currency considered universal in the economic market.

How does the dollar split?

A question that arises is about the name given to the currencies used in the United States. This is because the name dollar is only valid from the basic unit of the currency, that is, for the 1 dollar bill.

Just as here, units of currency are called cents, in the United States, these fractions of a dollar are called Cents or Pennies. And to reach the dollar, coins worth 100 are needed. cents.

There are currently six coins and seven banknotes in circulation. See below how the nomenclature works for each unit:

US$ 1,00 = 1 dollar

US$0.50 = 1 half-dollar or 50 cents (50 cents)

US$0.25 = 1 quarter or 25 cents

US$0.10 = 1 dime or 10 cents (10 cents)

US$0.05 = 1 nickel or 5 cents

US$0.01 = 1 penny or 1 cent (1 cent)

How can it be abbreviated?

The official code for the dollar in the United States is USD. This acronym means United States Dollar (United States Dollar).

However, the International Monetary Fund (IMF) – an organization made up of 190 countries that aims to promote international monetary cooperation – refers to the dollar as US$, a very common abbreviation.

It is also possible to use just the $ before the numeric value.