The maintenance of the dollar’s appreciation at the current level, of R $ 4.30, generates apprehension and concerns the industries that depend on imported inputs. The president of FCA Latam, Antonio Filosa, said yesterday that the high dollar and the prices of precious metals (quoted in dollar) put pressure on the costs of Brazilian automakers. “If it continues, it will be a cost problem. If an outbreak, if the dollar fluctuates and returns to the level before, we make a sacrifice to keep the price and not lose volume. But if it is a trend, it complicates and there is no way to insure it ”, said the executive who confirmed that the turbo engine plant in Betim will start operating at the end of this year, generating 1,200 jobs.
Despite the dollar and the high inputs, Filosa confirmed investments of R $ 16 billion by 2024, with the launch of six launches this year, with emphasis on the new Fiat Strada pickup. The high exchange rate also creates apprehension for other sectors. “The tendency for the dollar to remain at that level and to any noise in the market goes up a little more”, evaluated the president of the Economic Policy Council of Fiemg, Tadeu Monteiro Barros Pinto. For him, the valued exchange rate can affect industries with debt in debt and that were not protected, as well as favoring sectors that face competition from imported products, with emphasis on electronics and the food sector.
Tadeu Monteiro says that the projections made last year for the exchange rate were around R $ 3.80 and R $ 3.90 and it was not imagined that the currency of the United States would reach the current level. Fiemg has just completed a study on the impact of rising dollar on the industry. For the entity, external uncertainties regarding China’s growth, reducing commodity prices, internal political uncertainties and the weak reaction of the economy keep the real devalued. “The automotive industry, which is partly dollarized, with more imported components, has pressure on costs, but there are sectors that are more competitive to export or win the market than imported imports,” said Tadeu Monteiro, who is also vice president of Fiemg.
For Camila Abdelmalack, chief economist at Veedha, the exchange rate “changed levels” with the geopolitical conflict and uncertainty regarding economic activity. “The trend is that in the short term it will remain at this level due to the suspicion about the intensity of the economy’s recovery, but I estimate that it has the potential to stay at a level of R $ 4.15”, said the economist. The good news, for both Camila and Fiemg, that this dollar increase does not threaten inflation control.