Dollarization
What is Dollarization?
Dollarization refers to the practice of diversifying or allocating part of your wealth in U.S. dollars instead of relying solely on investments in one local currency. This can be done informally by individuals or formally by governments adopting the dollar as legal tender. The U.S. dollar is globally recognized for its stability, making it a safe haven during times of economic uncertainty or currency devaluation.
Why Does Dollarization Matter?
For instance, the Brazilian Real has experienced significant devaluation against the U.S. dollar over the past 30 years.
• In 1994, when the Brazilian Real was introduced, its value was nearly 1:1 with the dollar.
• By 2024, the exchange rate has surpassed 6 BRL per USD, a devaluation of over 80%, reflecting decades of economic fluctuations and inflationary pressures.
This historic trend highlights how holding assets in dollars can preserve purchasing power and protect against local currency depreciation. Dollarization also minimizes risks associated with inflation and exchange rate volatility, providing financial security in a more stable currency and strong economy.
Graph showing 30y trend BRL x USD
How to Get Started
The best way to dollarize your wealth is by investing in assets tied to the U.S. dollar, such as multifamily real estate properties in the United States. Multifamily investments offer:
• Stable Cash Flow: Income from tenants paid in USD.
• Asset Appreciation: Real estate values tend to rise over time in stable markets like the U.S.
• Hedge Against BRL Devaluation: Your wealth grows in a stronger currency.
By partnering with us, you gain access to expertly managed multifamily properties in the U.S., allowing you to secure your financial future while benefiting from one of the world’s most stable currencies. Let us help you take the first step toward dollarizing your portfolio!
