Interest-Rates
Forward Exchange Rate Formula: A Forward Is Not a Forecast
How the forward exchange rate formula turns two interest rates into a forward, checked on B3 data for 2 October 2026: a 13% real yield, hedged into dollars, earns the dollar rate of about 6%. With a calculator of hedged and unhedged outcomes.
The Cost of FX Hedging: Rate Gap, Basis, Spread, Collateral
The cost of FX hedging reais into dollars is an interest-rate gap, not a bank fee. A cascade on B3 data from the 9.5-point policy gap to the 6.66% market price, the onshore dollar basis since 2006, real bank spreads, collateral, IOF and a calculator.