Brazil’s Exchange Flow Goes US$ 1.4 Billion into the Red

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MoneyFigures disclosed by the Central Bank of Brazil show the balance between the flow of dollars entering and exiting Brazil (the exchange flow) last week resulted in a deficit of US$ 1.391 billion.

However, with the positive result of the first week of February (US$ 1.917 billion), the partial balance for the month, up to the 12th, is US$ 526 million positive. The result for the first two weeks of February is lower, though, than in the same period last year, when it totaled US$ 1.026 billion.

In the accumulated result from January to Friday 12, the result is US$ 1.6 billion positive, against a negative balance of US$ 1.992 billion in the same period last year.

In the two weeks of February, the financial balance (investment in papers, transfer abroad of profits and dividends and foreign direct investment, among other operations) was US$ 2.187 positive. The trade balance, which covers export, import and financing to the sector, however, had a negative result of US$ 1.661 billion.

From January to the second week of this month, the financial flow was US$ 3.401 billion and the trade flow was US$ 1.801 billion negative.

The Central Bank of Brazil also informed that purchases of dollars on the spot market raised international reserves by US$ 257 million in the first two weeks of February this year. In January, the result was US$ 1.709 billion.

Imports of Chemicals

Brazilian imports of chemical products totaled 1.9 million tons in January, growth of 23.4% over December and 66.4% when compared to January 2009, according to figures disclosed by the Brazilian Chemical Industry Association (Abiquim).

The value of purchases was US$ 2.2 billion. There was reduction of 4.7% over December, but growth of 11.3% over January last year. The most imported items were inputs for the production of fertilizers and thermoplastic resin.

Shipments of Brazilian chemical products generated US$ 991 million last month. There was a 6.7% reduction over December, but expansion of 61.2% over January 2009. Exports totaled 997,200 tons, 0.5% less than in December and 46.3% more than in January last year, always according to the Abiquim.

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