The Real's Devaluation and the Importance of Dollarizing Your Wealth
Understand how inflation and currency devaluation erode your purchasing power and discover strategies to protect your wealth.
The History of Devaluation
See how the Real has lost value against the Dollar in recent years
| Year | USD/BRL Rate | Accumulated Loss |
|---|---|---|
| 2010 | R$ 1.67 | - |
| 2014 | R$ 2.35 | -29% |
| 2018 | R$ 3.87 | -57% |
| 2020 | R$ 5.20 | -68% |
| 2022 | R$ 5.40 | -69% |
| 2024 | R$ 6.10 | -73% |
Someone who had R$ 1 million in 2010 and didn't dollarize now has the equivalent of US$ 164,000. Had they converted in 2010, they would have US$ 598,000.
The Real Impact on Your Wealth
The combination of inflation and currency devaluation silently erodes your wealth
R$ 1,000,000 in 2010
Equivalent to ~R$ 270,000 in dollars today
R$ 500,000 property in 2015
The same amount no longer buys a similar property
Savings yielding 6% per year
Doesn't keep up with real inflation of 8-10%
Why Is Brazil a Risk to Your Wealth?
Concentrating all your wealth in Brazilian assets is a high-risk bet. See the main factors threatening your wealth:
- Growing public debt and fiscal mismanagement
- Constant political instability
- High interest rates that don't offset devaluation
- Persistent inflation above targets
- Dependence on commodities and the global economy
- Risk of government intervention
Remember the 1990 Asset Freeze
The Collor Plan froze the savings of millions of Brazilians. History shows that blindly trusting the Brazilian system is risky.
Why Dollarize Your Wealth?
Having dollar-denominated assets isn't a luxury for the rich - it's a necessity for anyone who wants to preserve wealth
Exchange Rate Protection
Your wealth doesn't lose value with fluctuations of the Real
Global Mobility
Dollar-denominated assets are accepted and recognized worldwide
Value Preservation
The dollar has historically maintained its purchasing power
Income in Strong Currency
Receive rent and dividends in dollars
Asset Protection
Assets abroad have additional legal protection
Diversification
Don't put all your eggs in the Brazilian basket
Strategies to Dollarize Your Wealth
Learn the main ways to protect your wealth in strong currency
Real Estate Abroad
International Bank Account
The Importance of Generating Income in Dollars
It's not enough to have wealth in dollars — having a source of income in strong currency ensures your standard of living isn't affected by Brazilian crises.
Real Estate Rental
Properties in Dubai yield 7-10% per year in dollars
Company Abroad
Bill in dollars and pay lower taxes
Investments
Dividends and interest from international assets
Frequently Asked Questions
Why does the Real devalue so much?
The Real's devaluation is caused by multiple factors: chronic fiscal deficit, political instability, high inflation, low economic productivity, capital flight, and dependence on commodity exports. As long as the Brazilian government fails to balance public accounts, the devaluation trend continues.
Doesn't investing in dollars within Brazil solve the problem?
Partially. Currency funds and shares of exporting companies offer some protection, but you're still subject to Brazilian taxation, risk of asset freezes, and movement restrictions. Having physical assets abroad offers much stronger protection.
How much of my wealth should I dollarize?
We recommend that at least 30% to 50% of your wealth be in dollarized assets abroad. For families with wealth above R$ 5 million, this percentage can be even higher, depending on their goals.
Is it legal to have money abroad?
Yes, it's completely legal. Brazilians can hold accounts, real estate and investments abroad, as long as they properly declare them in their Income Tax return (assets abroad) and in the CBE (Brazilian Capital Abroad) declaration when applicable.
What's the easiest way to start dollarizing?
For most people, the most accessible way is through real estate abroad with easy down payment terms. In Dubai and Paraguay, it's possible to buy property with direct installment plans from the developer, without bank bureaucracy.
Do I need to leave Brazil to protect my wealth?
Not necessarily. You can have assets abroad while living in Brazil. However, for full tax optimization, formally leaving Brazil's tax system and establishing residency in a country with favorable taxation brings additional benefits.
Protect Your Wealth Now
Don't wait for the next crisis to act. Talk to our experts and discover the best dollarization strategy for your profile.