Brazilian Foreign Investments Zoom to US$ 23 Billion in 2006

Brazilian foreign investments amounted to US$ 15.022 billion in October, compared with only US$ 3 million for the same month in 2005, according to a statement issued by the Brazilian Central Bank (BC).

The high investment rate is due to the purchase of Canadian mining company Inco by Vale do Rio Doce, in October, the BC informed.

Nevertheless, according to the head of the bank’s economic department, Altamir Lopes, this capital outflow was neutralized by loans from foreign banks by the Brazilian company for the amount of US$ 13.628 billion, used in the Inco purchase operation.

"This is an atypical case of a very high Brazilian foreign investment, recorded as capital outflow, but which has as its counterpart a loan in the same balance of payments account. Therefore, the outcome is neutral, from a balance of payments perspective", Lopes explained.

From January until October 2006, Brazilian foreign investments were US$ 22.827 billion, a much higher value than recorded for the same period in 2005 (US$ 2.396 billion).

ABr

Tags:

  • Show Comments (1)

  • ch.c.

    But what has not yet been published is…..
    the strong rumour that : ” Cia Vale do Rio Doce is said to be considering creating a separate company to concentrate under one banner its non-ferrous metals (copper, nickel and aluminium) businesses, which could be based in
    Switzerland for tax reasons and listed in London, where all the big global miners are traded. This new company could have a market value of between US$27 and US$30 billion”

    Time will tell !

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

Brazil’s Congress Clear Lula of Any Wrongdoing

A Brazilian congressional committee has absolved Brazil’s President Luiz Inácio Lula da Silva of ...

Mercosur Asks in Brazil: Where’s the Money for Haiti?

A joint communiqué from the Mercosur summit, which took place on Friday in Ouro ...

Japan’s Prime Minister Signs Several Treaties and Agreements with Brazil

Brazilian president Dilma Rousseff and Japanese prime minister Shinzo Abe announced in Brazilian capital ...

Brazilians Will Be 238 Million by 2030

In 2030, Brazil is expected to have 237,7 million inhabitants, a growth of 39,6% ...

After Husband and 3 Children Are Killed Brazil Female Chief Leads Re-occupation of Land

Guarani Indians in Mato Grosso do Sul state, Brazil, have carried out a courageous ...

Lula Wants Europeans Investing in Brazil’s Olympics and World Cup

The European Union and Mercosur’s association agreement has to go “beyond tariffs and subsidies,” ...

Global Call Asks for Debt Amnesty for Poor Countries, in Brazil

More than 80 institutional representatives of civil society from around the world reunited in ...

Brazilian presidential candidates Lula and Geraldo Alckmin

Lula’s Electoral Stumble Gives Brazilian Politics New Lease on Life

The first day of October 2006 will remain in Brazil’s political memory for a ...

Brazil Is Number 1 in Demanding Private Info and Censorship on Google Services

Brazil and United States topped the list of nations demanding private information about Google ...