Latin America really gains purchasing power

From March 2017 to the same month of 2022, Real lost 31,32% of its value and strength in relation to the others. Thousands of Brazilians, especially low-income ones, felt inflation. Despite the domestic situation, the Brazilian currency gained purchasing power in some Latin American countries.

This is because other countries have also faced serious economic problems and political crises in recent years. This is the case of Argentina. The country is experiencing a huge devaluation of the peso. It's no wonder that so many Brazilians have been traveling there and other destinations in Latin America for some time now.

Real purchasing power

With actually greater purchasing power in some places, travel agencies (such as Decolar) offer advice for those who intend to travel to Buenos Aires, Santiago, Montevideo and other already popular destinations in South America with high demand.

According to the company, this happens because the currencies of the countries where the cities are located are less valuable in relation to the dollar and the real, which facilitates Brazilian tourism.

Experts interviewed by Estadão explained that last year people noticed that the real surpassed the Mexican, Chilean and Colombian pesos in relation to the dollar, among others.

The purchasing power of the real has shown better performance in relation to the Colombian peso, as 1 Colombian peso is equivalent to 0,0012 real. According to an analysis of Latin American countries carried out by The Economist, the real has a purchasing power only inferior to the Uruguayan peso.

However, Brazilians should still plan ahead and consider the Brazilian economy before deciding to spend all of their reserve funds on travel, especially those who plan to use a credit card for international purchases, as conversion rates remain high.