Exchange Rate Calculator

The exchange rate between the New Taiwan Dollar (TWD) and the Brazilian Real (BRL) has experienced notable fluctuations over the past few months. This report provides an analysis of the TWD/BRL exchange rate trends, examining historical data, identifying key factors influencing these movements, and offering insights into potential future developments.

Historical Exchange Rate Trends

2024 Overview

In 2024, the TWD/BRL exchange rate exhibited significant volatility. The highest recorded rate was 1 TWD = 0.2059 BRL on December 25, 2024, while the lowest was 1 TWD = 0.1558 BRL on January 15, 2024. The average exchange rate for the year stood at 1 TWD = 0.1680 BRL. Notably, the TWD appreciated by approximately 19.37% against the BRL over the course of the year. (exchange-rates.org)

2025 Year-to-Date Analysis

As of July 3, 2025, the TWD/BRL exchange rate has continued to fluctuate. The highest rate recorded was 1 TWD = 0.1949 BRL on May 5, 2025, and the lowest was 1 TWD = 0.1704 BRL on April 2, 2025. The average exchange rate for this period is approximately 1 TWD = 0.1808 BRL. Overall, the TWD has depreciated by about 3.21% against the BRL in 2025. (exchange-rates.org)

Factors Influencing Exchange Rate Movements

Several factors have contributed to the observed fluctuations in the TWD/BRL exchange rate:

1. Economic Performance and Monetary Policies

• Taiwan: Taiwan's robust export-driven economy, particularly in the technology sector, has bolstered the TWD. The Central Bank of the Republic of China (Taiwan) has maintained a relatively stable monetary policy, focusing on controlling inflation and supporting economic growth.

• Brazil: Brazil's economy has faced challenges, including political uncertainties and inflationary pressures. The Central Bank of Brazil has adjusted interest rates to manage inflation, which has influenced the BRL's value.

1. Global Commodity Prices

Brazil is a major exporter of commodities such as soybeans, iron ore, and oil. Fluctuations in global commodity prices directly impact Brazil's trade balance and, consequently, the BRL. For instance, a rise in commodity prices typically strengthens the BRL, while a decline can lead to depreciation.

1. Trade Relations and Balance of Payments

The trade balance between Taiwan and Brazil affects their respective currencies. A trade surplus in Taiwan can lead to a stronger TWD, while a deficit may weaken it. Conversely, Brazil's trade dynamics, influenced by its export and import activities, play a crucial role in determining the BRL's strength.

1. Political and Geopolitical Events

Political stability and policy decisions in both countries can impact investor confidence and currency values. For example, political reforms or instability in Brazil can lead to fluctuations in the BRL, while Taiwan's political relations with major trading partners can influence the TWD.

Recent Developments and Their Impact

April 2025 Depreciation

In April 2025, the TWD reached its lowest point against the BRL at 1 TWD = 0.1704 BRL. This depreciation can be attributed to several factors:

• Global Economic Slowdown: A slowdown in global demand, particularly in the technology sector, affected Taiwan's export performance, leading to a weaker TWD.

• Brazil's Economic Measures: Brazil implemented economic measures to curb inflation, including interest rate hikes, which attracted foreign investment and strengthened the BRL.

May 2025 Appreciation

By May 5, 2025, the TWD appreciated to 1 TWD = 0.1949 BRL, the highest rate for the year. Contributing factors include:

• Recovery in Taiwan's Exports: An uptick in global demand for technology products boosted Taiwan's exports, strengthening the TWD.

• Commodity Price Fluctuations: A temporary decline in commodity prices affected Brazil's export revenues, leading to a weaker BRL.

Future Outlook

Predicting future exchange rate movements involves considering various economic indicators and potential developments:

1. Economic Growth Projections

• Taiwan: Continued growth in the technology sector and diversification of export markets may support the TWD.

• Brazil: Structural reforms and stabilization measures could enhance economic performance, potentially strengthening the BRL.

1. Monetary Policy Decisions

Central banks' decisions on interest rates and monetary policies will influence currency values. For instance, rate hikes in Brazil to control inflation may attract foreign investment, bolstering the BRL.

1. Global Market Trends

Changes in global trade dynamics, commodity prices, and geopolitical events will impact both currencies. For example, a surge in demand for commodities could strengthen the BRL, while advancements in technology exports may favor the TWD.

Conclusion

The TWD/BRL exchange rate has experienced notable fluctuations over the past few months, influenced by economic performance, monetary policies, global commodity prices, and political events. While the TWD appreciated significantly against the BRL in 2024, it has seen a slight depreciation in 2025. Monitoring economic indicators and policy decisions in both Taiwan and Brazil will be crucial for anticipating future exchange rate movements.