Cur­rency fluc­tu­a­tion con­tin­ues to im­pact Brazil’s ex­ports

Shoes & Accessories - - The Month That Was -

Abi­calça­dos high­lights that ex­change rate fluc­tu­a­tions, es­pe­cially with the ap­pre­ci­a­tion of the real against the dol­lar, have had a neg­a­tive im­pact on ex­port­sas prices of the Brazil­ian footwear have in­creased as a re­sult. Ac­cord­ing to the same source, in Au­gust Brazil ex­ported 9.5 mil­lion pairs of shoes, 4.4% less than in the same month last year. In terms of rev­enue, the num­ber closed at 91.3 mil­lion US dol­lars, up by 4.2%. In the first eight months of the year, a to­tal of 77 mil­lion pairs were ex­ported, which gen­er­ated 699.47 mil­lion US dol­lars in for­eign cur­rency, up by 0.5% in vol­ume and by 13.2% in dol­lars in com­par­i­son with the same pe­riod in 2016. Ac­cord­ing to Heitor Klein, Ex­ec­u­tive Pres­i­dent of Abi­calça­dos, given the cur­rency fluc­tu­a­tions we should be fo­cus­ing on analysing the vol­umes ex­ported, as the value os­cil­lates ac­cord­ing to the ex­change rate: “The costs of the com­pa­nies are in reais, strong cur­rency. The ex­change, at the mo­ment, is harm­ing ex­ports, be­cause our prod­uct is about 10% more ex­pen­sive than the same pe­riod of last year, in­hibit­ing in­ter­na­tional buy­ers”, he ex­plained. Ac­cord­ing to Klein, com­pet­i­tive­ness fac­tors, un­der­mined by the so-called Brazil Cost - which in­cludes a high tax bur­den, ex­pen­sive and in­ef­fi­cient lo­gis­tics, ex­ces­sive bu­reau­cracy, among oth­ers - ham­per bet­ter per­for­mance, es­pe­cially with the un­favourable ex­change rate. This had a par­tic­u­lar im­pact in ex­ports to cer­tain mar­kets, spe­cially into the US.

“The United States, which ac­counts for al­most 25% of the to­tal gen­er­ated by ex­ports of Brazil­ian footwear, has been shrink­ing its pur­chases ev­ery month”, com­mented Mr Klein. Be­tween Jan­uary and Au­gust, the US im­ported 6.8 mil­lion Brazil­ian pairs, which gen­er­ated 124.7 mil­lion US dol­lars, de­creases of 14.6% in vol­ume and 11.4% in rev­enues in com­par­i­son with the same pe­riod of 2016. The sec­ond largest im­porter of Brazil­ian footwear is Ar­gentina. Be­tween Jan­uary and Au­gust 6.73 mil­lion pairs were ex­ported to Ar­gentina, for which 93.66 mil­lion US dol­lars were paid (up by 11.7% in vol­ume and up by 39% in dol­lars). The third largest buyer of the pe­riod was Paraguay, which im­ported 9.28 mil­lion pairs for 52.26 mil­lion US dol­lars (down by 4.8% in vol­ume and by 86.4% in rev­enue com­pared to 2016).

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