| | | Tariff Man Visits Latin America | | Earlier this week, President Trump announced he will impose tariffs on steel and Aluminum from Brazil and Argentina, the two largest economies in Latin America, due to a "massive devaluation to their currencies". President Trump is accusing Brazil and Argentina of manipulating their currencies, and thus lowering the prices of their goods and hurting American farmers. | | The Brazilian Real is trading 8% lower against the USD YTD and the Peso is down almost 40% YTD. But both countries are struggling from a macro-economic perspective, with the unemployment rate in Brazil above 10% and the Real reaching record low last week, the central bank of Brazil had to cut interest rates three times in the past four months to jumpstart the economy, which grew at a rate of 0.2% over the past year. In Argentina, inflation is above 50% and about a third of the population lives in poverty. The Argentine central bank has raised its interest rate to 63% to stop the decline of the currency. | | Watch the video | | If we can help you with any Foreign Exchange needs, please email foreignexchange@cnb.com or call (800) 447‑4133. | | Want to learn more about international finance, economics, and global events? Sign up for our other Foreign Exchange emails and videos! | | | | | | | Follow City National Bank on social media: | | | | | | Non-deposit investment products: | | • | Are not FDIC insured, | | • | Are not deposits or other obligations of City National Bank and are not guaranteed by City National Bank, and | | • | Are subject to investment risks, including possible loss of the principal invested. | | | | | This report is for general information and education only and was compiled from data and sources believed to be reliable. City National Bank does not warrant that it is accurate or complete. Opinions expressed and estimates or projections given are those of the authors as of the date of the report with no obligation to update or notify of inaccuracy or change. This report is not a recommendation or an offer or solicitation to buy or sell any financial instrument discussed. It is not specific investment advice. Financial instruments discussed may not be suitable for the reader. Readers must make independent investment decisions based on their own investment objectives and financial situations. Prices and financial instruments discussed are subject to change without notice. Instruments denominated in a foreign currency are subject to exchange rate and other risks. City National Bank (and its clients or associated persons) may engage in transactions inconsistent with this report and may buy from or sell to clients or others the financial instruments discussed on a principal basis. Past performance is not an indication of future results. This report may not be reproduced, distributed or further published by any person without the written consent of City National Bank. Please cite source when quoting. | | | | | | |
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