Bloomberg News

Tendencias’s Blanche Says Brazil Real May Advance 9.8% in 2012

December 29, 2011

Dec. 29 (Bloomberg) -- Nathan Blanche, a partner and economist at Sao Paulo-based consulting firm Tendencias Consultoria Integrada, comments on the outlook for the Brazilian currency in 2012. His forecast for the real to strengthen to 1.7 per U.S. dollar would represent a 9.8 percent gain. He spoke in a telephone interview.

On the possibility of a worsening European debt crisis:

“Even with a lot of volatility in the first half of 2012, we probably won’t have a credit crunch. The situation in Europe should be under control in the second half. I expect the real at 1.70 per dollar at the end of 2012.”

On government currency measures:

“I assume the government will retract most of the measures previously taken to contain the real’s appreciation.”

On currency inflows:

“Brazil’s trade surplus will continue to be sustained by commodities. Foreign exchange inflows to the country will continue to be positive, although smaller next year.”

--Editors: Marie-France Han, Brendan Walsh

To contact the reporter on this story: Josue Leonel in Sao Paulo at;

To contact the editors responsible for this story: David Papadopoulos at Helder Marinho at

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