Brazil's flow of exchange, i.e., the sum of dollar inflow and outflow in the country, was negative by US$ 1.768 billion, in September, up until the 11th. The figure is lower than the one recorded in the same period of last year, which was US$ 4.179 billion. The information was disclosed by the Central Bank of Brazil (BC).
The negative result was mainly a consequence of the trade flow result (exports, imports and financing to foreign trade), which ran a deficit of US$ 1.491 billion. Financial operations (investment in bonds, remittances of profits and dividends to foreign countries and foreign direct investment, among other operations) was also negative, at US$ 277 million.
From January until September 11th, the flow of exchange was positive by US$ 5.125 billion, as against US$ 18.564 billion during the same period of 2008. So far in 2009, the flow of trade remains positive by US$ 9.843 billion, and the flow of finance is positive by US$ 4.718 billion.
The Central Bank also informed that up until September 11th, it had purchased US$ 636 million on the market. The dollars purchased become part of the country’s foreign reserves.
New Jobs
In the month of August in Brazil, 242,126 job positions were created, as a result of 1,457,455 people taken on and 1,215,329 dismissals. It was the best result this year, as informed today by the Ministry of Labor, upon disclosing the General Records Office for Employment and Unemployment (Caged). The number of dismissals was the lowest this year.
The services sector was the one that hired the most, with 85,568 new workers, the second highest figure ever for August, and the highest this year. The processing industry hired 66,564 workers, the best performance ever for the sector and best result in 2009. So far this year, the country has created 680,034 formal jobs.
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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.
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Brazil's sum of dollar inflow and outflow in Brazil, a.k.a. flow of exchange, recorded a surplus of US$ 1.076 billion in June, according to figures disclosed by the Central Bank of Brazil. This was the third consecutive month with a surplus this year. In June of last year, a deficit of US$ 877 million was recorded.
The result in June was influenced by the US$ 1,223 billion surplus in the flow of finance (investment in bonds, remittances of profits and dividends to foreign countries and foreign direct investment, among other operations), which made up for the US$ 148 million deficit recorded in balance of trade operations.
Up until July 8th (three business days), the flow of exchange remained negative by US$ 672 million, the flow of finance ran a US$ 124 million surplus, and the flow of trade ran a US$ 796 million deficit.
From January until July 8th this year, the flow of exchange also ran a surplus, of US$ 1.993 billion, as against US$ 14.210 billion in the same period of 2008. In the accumulated result for 2009, up until June 8th, the flow of finance recorded a US$ 10.038 billion deficit and the flow of trade ran a US$ 12,032 billion surplus.
The figures disclosed also show that in June of this year, the Central Bank of Brazil purchased US$ 3.247 billion in United States currency. In July, up until the 8th, dollar purchases totaled US$ 133 million. The dollars that are purchased become foreign currency reserves.
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Brazil's flow of exchange (the sum of dollar inflow and outflow into Brazil) remained positive at US$ 7 million in the first week of December and accumulated US$ 5.397 billion this year.
The figures are much lower than the ones recorded during the same periods last year: US$ 2.660 billion and US$ 84.717 billion, respectively. The figures were disclosed today by the Central Bank of Brazil.
In the first five business days of the year, the financial account (recording of capital inflow and outflow at Stock Exchanges, investment in bonds, remittances of profits and dividends to foreign countries, foreign direct investment, among other operations) was negative at US$ 1.081 billion.
And the trade account, which includes balance of trade, advances on exchange contracts – ACC – and advance payment Advance on Export Contracts – ACE, ran a surplus of US$ 1.088 billion.
So far this year, the financial flow recorded a negative result of US$ 43.711 billion, as against a surplus of US$ 10.765 billion during the same period last year.
The trade account posted a US$ 49.107 billion surplus, as against US$ 73.952 billion in the same period last year. Exports totaled US$ 179.642 billion and imports reached US$ 130.535 billion. In the same period last year, the figures were, respectively, US$ 173.346 billion and US$ 130.535 billion.
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]]>The unification of the free (commercial) and fluctuating (tourist) exchange rates went into effect, in Brazil, March 14, to the plaudits of the financial market.
The unification and export exchange regulations approved by the National Monetary Council (CMN) on March 4 simplify the legislation and facilitate the remittance of funds abroad.
The elimination of the difference between the commercial and tourist dollar, with their own specific laws, changes nothing with regard to the quotation of the American currency or the conversion of other foreign currencies.
On the other hand, the measure reduces the cost of currency exchange transactions, with a concomitant increase in the efficiency of the economy, affirmed the director of International Affairs of the Central Bank (BC), Alexandre Schwartsman.
All commercial, interbank, foreign investment, and loan transactions done on the free currency exchange were registered at the BC, while the fluctuating exchange charged prices higher than the daily quotation for international travel, services, Brazilian investments abroad, and remittances through the so-called CC-5 accounts (belonging to non-residents). These accounts, by the way, were abolished.
The US$ 5 million annual limit on Brazilians’ investments abroad was also eliminated, but the BC will continue to register all exchange operations involving more than US$ 3.6 thousand (10 thousand reus), as well as foreign capital inflows into the country.
The changes introduced by the CMN won the immediate sympathy of exporters, who now have up to 210 days after their merchandise is shipped to “discharge” the foreign currency on the domestic market.
They previously had only 50 days, regardless of whether or not they had received payment.
Translation: David Silberstein
Agência Brasil
Brazil’s Central Bank informed that the unification of the commercial and tourist currency exchange markets (for businesses and individuals, respectively) and the new exchange regulation for exports will go into effect next week, in accordance with the norms approved by the National Monetary Council (CMN) last Friday, March 4.
Begining next Monday, March 14, there will no longer be limits on purchases and sales of dollar and other foreign currencies in Brazil. This will facilitate transactions for people who need to transfer funds abroad.
The current laws only permit individuals to conduct these transactions when they are going to travel outside the country and limit business transactions to US$ 5 million per operation.
The new measure, approved in a special meeting of the CMN, will help to deplete the black market exchange, known as the parallel market, which charges an average 20% premium over the official US dollar exchange rate.
Minister of Development, Industry and Foreign Trade, Luiz Fernando Furlan, said recently that Brazil should take advantage of the cheaper dollar and strengthen its reserves, boost trade and pay off dollar debts, especially companies in the private sector.
Furlan also announced that the government should announce measures to stimulate industrial and commercial activity at a meeting of the Industrial Development Council. The measures should go into effect soon and will reduce taxes for maritime ports and so-called dry ports.
Translation: David Silberstein
Agência Brasil