Brazil’s balance of payments (the country’s total revenues minus its outlays) showed a US$ 769 million surplus in February, according to the Brazilian Foreign Sector Report released Tuesday, March 21, by Brazil’s Central Bank (BC).
This result is a direct reflection of favorable international trade conditions, which enabled the country to obtain a US$ 725 million current account surplus, enough to offset the US$ 240 million deficit in the financial account.
The current account covers all the country’s transactions abroad, including merchandise exports, import expenses, foreign debt interest payments, insurance, freight, and unilateral transfers.
The standout performers in February were the trade surplus (US$ 2.81 billion) and the net inflow of foreign portfolio investments, which totaled US$ 3.7 billion. On the other hand, net outlays on services acquired abroad amounted to US$ 567 million, 60.6% higher than in February, 2005.
The BC report also shows that the country’s international reserves rose US$ 491 million last month, bringing the total to US$ 57.4 billion.
The estimated foreign debt ("estimated," because there is usually a 90-day time lag before the consolidated figures are available) declined more than US$ 450 million in February in relation to December’s consolidated balance of US$ 169 billion.
December’s figure includes US$ 18.1 billion in short-term debt (up to 12 months) and US$ 151 billion in medium and long-term obligations.
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