The past few days, national economy has undergone intense changes. The basic interest rate (Selic) suffered yet another cut, now going from 4.5% to 4.25% per year for judges.
Since the dollar soared and reached R$ 4.37 on Thursday, the highest price ever recorded. Both situations directly impact the lives and pockets of the judge-forans southeast.
While low interest rates make credit more accessible, on the other hand, they reduce the profitability of applications, such as savings accounts.
Rise in Prices
The rise in the dollar has the responsible purpose of triggering an increase in consumer prices, which can be felt in food, transport, health and tourism.
It is essential that this economic scenario be maintained for the coming months, and it is fundamental to understand it in order to make the best decisions regarding money.
The lowering of the Selic rate was defined during the first meeting of the Monetary Policy Committee (Copom) in 2020, on February 5th.
Indeed, the drop in the Selic rate directly influences other interest rates, such as overdraft, credit card and loans.
Therefore, when it reduces, credit becomes cheaper. On the other hand, it becomes less attractive for foreign investors in the country.
Therefore, the dollar becomes scarcer and, consequently, more expensive.
In addition to the expected effect of the cut in interest rates, there are also other factors that contributed to the rise of the US currency.
At the international level, the increase in cases of infection by the coronavirus has intensified the climate of insecurity among investors.
At the national level, dollar reacted to the controversial speech by the Minister of Economy, Paulo Guedes, on the subject during an event in Brasília, last Wednesday, 12.
“The exchange rate is not nervous, it has changed. There is no exchange rate R$ 1.80. Everybody going to Disneyland, maid going to Disneyland, one hell of a party.”
Savings
Undoubtedly, the effects of the economic changes are being felt by the people of Juiz de Fora. Those who have money invested in savings have seen financial returns decrease significantly.
In other words, the economy is still weakened in many ways. There are many people heavily indebted, unemployment is high and there is a lot of uncertainty.
This scenario demands, more than ever, financial control. Those who have some money saved can seek information on investments with greater profitability compared to savings.
