Brazil and currencies

BDR (Brazilian Depositary Receipt)

A receipt traded on Brazil's B3, in reais, that stands for shares of a foreign company, such as Apple or Microsoft.

Why does it matter?

It lets people in Brazil invest in foreign companies without opening an account abroad.

How do I read it?

A BDR's price follows the foreign share and the exchange rate, so it also moves when the dollar moves. It is the Brazilian mirror of an ADR.

Example

A BDR of a U.S. company trades on B3 in reais. If the U.S. share stays at $100 and the dollar rises from R$ 5.00 to R$ 5.50, the BDR's price in reais rises about 10%.