Treasury Verdict Brazil

Nov 19th 2013 | Americas

INTRODUCTION

Treasury Verdict is the electronic voting and panel discussion held at EuroFinance events worldwide. This report is based on the votes of corporate treasury professionals, bankers and other vendors and advisers who attended EuroFinance’s 7th annual conference on Treasury, Cash & Risk Management in Brazil, held in São Paulo, on 12 and 13 November 2013.

Commentary was provided by these panellists:
• Marcelo Habibe, Treasurer, Fibria, Brazil
• Alexandre Bittencourt, International Treasury Manager, Petrobras, Brazil
• Harvey Colli, Head of Treasury Services Sales Brazil, J.P. Morgan
• Clayton Nogueira, CFO Latin America, Valspar Corporation (conference chair)

Key findings
• A majority of treasury and finance professionals (55%) in Brazil feel more confident about their business’ prospects in the next year. This is less optimistic than their peers in India (66%) and Southern Africa (58%), but considerably ahead of those in Europe (38%), who have all been polled on the same question in the past month. [Question 1, see Global Context]

• Business confidence in Brazil does not translate into confidence about the country’s economic prospects in the next year. Nearly half of all treasurers (46%) are less confident about Brazil’s economic prospects in the coming 12 months. Some 39% feel more confident, while 15% feel the same as they did this time last year. [Question 2]

• Over half of treasury and finance professionals in Brazil (53%) believe that the Real should be seen as one of the ‘fragile five’ currencies alongside India, Turkey, Indonesia and South Africa. This lack of confidence in the currency is also reflected by the fact that an identical majority of 53% believe that the Real will depreciate between 5-15% against the US dollar in the next 12 months. [Question 3 + 4]

• Treasury and finance professionals in Brazil are not happy with their level of cash visibility and ability to deploy it within the organisation. Nearly six in every ten treasurers are of this opinion. [Question 10]

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