The change in the exchange rate relative to the dollar is currently greatest for the Brazilian real and the Argentine peso. The only other currency that comes even close is the Russian ruble. Relative currency valuation is a major factor in export competitiveness. The U.S., Argentina and Brazil have roughly the same trade to GDP ratios, but Latin American exports are about six times more sensitive to exchange rate fluctuations than those from the U.S. due to the latter’s role as a reserve currency. Farmers in Argentina and Brazil are taking advantage of the outsized lower value of the national currencies by forward selling their production. One impact of this surge in exports is an increase in U.S. carryover stocks relative to...
From WPI Consulting
Accountability and a comprehensive approach to export programming
WPI’s team helped construct a strategic approach to develop, implement, and track promotional activities in 8 key regions across the globe for an agricultural export association. With continued progress measurement and strategic advisory services from WPI, the association has seen its ROI from investments in promotional programming increase by 44 percent over the past 5 years. Not only does this type of holistic approach to organizational strategy provide measurable results to track and analyze, it fosters top-down and bottom-up organizational accountability.