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

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