This Side of the Tanking Dollar

My first visit to Brazil was March of 07. My husband’s company sent us down to take a look at the place we were agreeing to call home.

At that point, I remember that the exchange rate was 1 USD = R 2.22. It was great! I loved window shopping that week, doing the calculations in my head and being able to divide the price by two and still take a little off of that.

We’ve sadly watched the power of the dollar decrease while simultaneously realizing that those prices listed in reais were pretty close to what we would be paying in our US currency. I just checked today and it is 1 USD = R 1.63.

Suddenly Brazil isn’t quite the low cost paradise we first experienced. I haven’t really done any shopping in Brazil for this reason. I’ve purchased flip-flops, of course, and jewelry. However, when it comes to clothes I find myself walking on past the stores as soon as I look at the price.

I first admit that many of the clothes simply aren’t my style. I’m not one for backless shirts and midriff-revealing jackets. I do come across a few things every now and then though – tshirts, jeans and shoes.

However, when I look at the price and see that the pair of cute flats is R$60 and remember that I can no longer cut that price in half they aren’t so appealing.

Remember, I am a true bargain shopper. Regardless of the fact that I would never pay $60 for a pair of trendy shoes in the first place, the quality just isn’t there either. I just can’t see paying the same I would in the US for something made out of uncomfortable materials that aren’t going to last.

Of course the economy is on everyone’s mind right now. Living outside of the US, but still spending in US dollars, we have a very different perspective on all the issues. Right now the rising gas and food prices at home aren’t that big of a concern for us. I have noticed prices go up a bit on food here, but not much compared to the US.

It is interesting because last November my Portuguese teacher told me with excitement that he would probably be able to go to the US this year because of the exchange rate. So it is good for some and not good for others. It is just an interesting side to be on and I had never really considered the power of the dollar prior to this experience.

The less worldly, economical me feels it is such a bummer for more materialistic reasons. I was hoping to stock up on a lot of unique things during our time here, but I don’t see that happening now. Well, with the exception of some boots. Tanking dollar or not, I am buying some boots this winter!