Currency exchange

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Tell that 2 the others

What others?
It is addressed to all.

I have friends (and friends of friends) who travel back and forth between Brazil and the U.S.  There seems to be a lot of "informal" buying and selling of dollars / reais, as far as I can tell, always at the official exchange rate.   Is this a problem?

02/20/22

Hi, Viajanete!

That certainly sounds suspicious, with the unusual amount of US cash that's always probably sloshing around in your town.  It could conceivably be drawing money launderers from other parts of Brazil.  I'd keep my distance.

Viajanete wrote:

I have friends (and friends of friends) who travel back and forth between Brazil and the U.S.  There seems to be a lot of "informal" buying and selling of dollars / reais, as far as I can tell, always at the official exchange rate.   Is this a problem?

____

I have done this at the airport, GRU, a few times, selling U.S. dollars to get R$. I always get a great, very high rate of exchange, much better than the little exchange shops in the city.  BUT!!!!!!  This is a HIGHLY ILLEGAL BLACK MARKET ACTIVITY.  I suggest you do not do this and do not get caught.

I only exchange at bradesco, very fair rate,mark up is 4.5%,regarding my account,very close 2 black market rate,even better,if in doubt,exchange small amount initially.

Same here. Bradesco charges a little less here or maybe Prime customers get a break.

I get any withdrawals fees reimbursed by fidelity investments, the currency mark up was 1%,now 4.5% at bradesco, still a good deal,fidelity customer  service,excellent, trying 2 squeeze a couple of centavos not worth it.

Thanks, everyone.  In my circle, in the transactions I've witnessed, it seems the exchanges are between family and friends who are planning a trip to the U.S. and folks who've been there and have brought back extra dollars that they keep on hand. As I say, the official exchange rate currently showing up on the internet is the standard they've used in my presence -- I guess the folks who have the dollars are keeping them as an investment, presuming their value in reais will increase over time.  With inflation everywhere, I'm not sure whether buying power changes that much... I haven't been here long enough to gauge.  I do appreciate the advice and warnings.  I'll steer clear.

Would be remiss not to include the latest info on fees on certain atms,when withdrawals are done.For years,least 4 Americans Bradesco was the best deal in town,mark up was only 1%,thats over,markuo shotup to about 6% in no time,i am now using banco santander with a cheaper markup.In unison w fidelity investments, whom reimburses some fees,makes it bearable.

Today the international exchange rate used by big banks was 4.74 reals to the dollar. Somehow in Paraguay today I got 4.87, legally at an cambio exchange. Next week in Brazil, for comparison I will see what I get at Bradesco or Santander ATMs. In past trips, I have gotten great rates that are very close to the international exchange rate when I use U. S. credit cards, but I have lost about 4% plus fees on Brazilian ATMs.

A couple weeks ago, I was in Montevideo. There, the cambio exchanges were much better than ATMs.

I think I'm spoiled in Paraguay where I get excellent exchange rates both on ATMs and cambio exchanges.

It's an adventure. Every country is different.

You will probably get a better rate at Santander, bradesco up to 6.5,also some banks are reimbursing the withdrawals fees,like fidelity, gotta shop around, hearing about banco rendimento,dont know the mark up yet.

The current trend is going contrary to the predictions by "the narrative".  Brazil is supposed to be a backwards nation whose currency simply goes downhill all the time.  The problem right now is that Russia, also, is supposed to have their currency falling apart but its not, and now that they are demanding payment in rubles its making everything to go topsy turvey.

With trends going counter to expectations, all the bankers blow out the spreads ... the spreads on gold bulliion and even on stock options are also getting wider ... but they have serious, serious problems going forward .....

Good morning everyone,

I have friends (and friends of friends) who travel back and forth between Brazil and the U.S.  There seems to be a lot of "informal" buying and selling of dollars / reais, as far as I can tell, always at the official exchange rate.   Is this a problem?

- @Viajanete