Brazil Stocks, ETFs Hit High on Currency Strength, Karel Mercx Says Brazil’s Central Bank Is The ‘Most Responsible’ In The World

by | Apr 13, 2026 | General

Brazilian stocks have been among the top performers in 2026, driven by a strengthening Brazilian Real. Karel Mercx, an investment specialist from Amsterdam, said on X, “I have been saying it for years: Brazil’s central bank is the most responsible central bank in the world, and that is good for investors.”

Brazil’s stock market (Bovespa) reached a new all-time high as of April 10, 2026, amid optimism over easing tensions in the Middle East and strong gains in the utilities, financial, and energy sectors. Investors have been rotating back into Brazilian large- and mid-cap stocks, as strengthening currency makes Brazilian stocks more attractive to global investors. The stocks are up 30% so far this year.

Bank of America Says Brazilian Real To Remain Strong

Brazil continues to offer some of the highest real interest rates among major economies. Bank of America forecasts the Brazilian real to strengthen to 5.25 per dollar by the end of 2026 and would maintain an elevated level through 2027, supported by high commodity prices, elevated interest rate carry, and an improving political environment, according to an Investing.com report. The current geopolitical environment is reportedly a net positive for Brazil’s economy as a net oil exporter.

Brazil ETFs Hit 52-Week High

Brazil ETFs hit new 52-week highs in the April 10 trading session, riding the strong bullishness in the country’s stock market.

The Shares MSCI Brazil ETF (NYSE:EWZ) gained 28% year-to-date. It tracks the MSCI Brazil 25/50 Index (Net), which holds 46 stocks. The fund has $10.1 billion in its assets under management and trades in an average daily volume of more than 33 million shares. It charges 0.59% in annual fees.

Benzinga Edge Stock Rankings indicate that the EWZ ETF has a Momentum score in the 87th percentile. It maintains a strong price trend in the short, medium and long term.

Franklin FTSE Brazil ETF (NYSE:FLBR) surged about 33% since the start of the year. It is a low-cost ETF with an expense ratio of 0.19% and follows the FTSE Brazil RIC Capped Index. With an AUM of $527 million, FLBR holds a basket of 69 stocks and trades in an average daily volume of 302,000 shares, indicating a wider bid/ask spread than EWZ.

Benzinga Edge Stock Rankings indicate that the FLBR ETF has a Momentum score in the 88th percentile. It maintains a strong price trend in the short, medium, and long term.

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