Brazil’s Exchange Surplus Close to US$ 500 Million in July

US dollar The Brazilian flow of exchange ran a surplus of US$ 491 million up until the 24th this month, according to the Brazilian Central Bank. In the same period last year, the result was negative by US$ 2.486 billion.

From July 1st to 24th, the flow of finance (investment in bonds, remittances of profits and dividends to foreign countries and foreign direct investment, among other operations) runs a surplus of US$ 3.176 billion. As for the flow of trade, which concerns export and import operations, there is a deficit of US$ 2.686 billion.

Last Monday (27th), the head of the Economic Department of the Central Bank, Altamir Lopes, explained why the flow of finance is now positive and the flow of trade is negative, whereas the opposite usually holds true.

According to him, in 2008 the Brazilian government authorized companies to keep revenues from exports outside of Brazil. Now, however, according to Lopes, companies are using the funds that were kept abroad to liquidate import contracts that are expiring.

Another factor that explains the inversion of figures is the fact that some branches of foreign companies in Brazil are making advance payments on imports to their headquarters abroad.

From January until last week, the flow of exchange recorded a surplus of US$ 3.156 billion, whereas the financial result showed a deficit of US$ 6.986 billion and the trade result ran a surplus of US$ 10.142 billion. In the same period last year, the flow of exchange ran a surplus of US$ 12.448 billion.

The Central Bank also informed July 29 that up until the 24th this month, it has purchased US$ 906 million in United States dollars. The dollars purchased become part of the country's foreign reserves.

ABr

Tags:

You May Also Like

Brazil’s Chicken Exports Grow 56%, But Weak Dollar Means Less Profit

Chicken meat exports from Brazil totaled US$ 2.7 billion from January to May, representing ...

Way, Way Back

A trip from Fortaleza into the interior of Ceará state is an experience in ...

The Economist Decides to Teach Brazil and Lula a Few Lessons

Recently, capitalism ‘bible’ The Economist, published in London since September 1843, decided to give ...

Carmem

He opens the door and makes a face in disgust, as if someone else ...

For ILO, Half of Brazilian Workers Are in the Informality

The International Labor Organization (ILO) considers worrying the situation in Brazil where there is ...

For World Bank Chief, Brazil Is Doing Well, But Millions Are Still Too Poor

Brazilian President Luiz Inácio Lula da Silva met Thursday, December 15, with the president ...

IMF Urges Brazil to Fight Poverty and Inequality

Since the 2002 crisis, and in the context of a favorable external environment, Brazil’s ...

In Brazil, Industrial Output, Car Sales and Installment Payment on Time Are All Down

In São Paulo, Brazil, the number of people who have fallen behind in making ...

Hair Apparent

The controversy became cause célèbre when bestseller writer Luis Fernando Verissimo for two days ...

Brazil and South Korea Sign US$ 4 Billion in Deals

Brazilian and South Korean institutions and enterprises signed this Tuesday, May 24, in South ...

WordPress database error: [Table './brazzil3_live/wp_wfHits' is marked as crashed and last (automatic?) repair failed]
SHOW FULL COLUMNS FROM `wp_wfHits`