Brasília – Brazilian spending in foreign countries hit a record in July, according to figures disclosed by the Central Bank this Tuesday (23rd). Last month, spending reached US$ 2.196 billion, and in the first seven months of the year the figure was US$ 12.38 billion. Preliminary figures for the current month, up until today, have already exceeded the whole of last month, at US$ 2.283 billion.
Revenues from foreign spending in Brazil have reached US$ 489 million in July and US$ 181 million this month. In the first seven months of the year, revenues reached US$ 3.859 billion.
According to the head of the Central Bank’s Economic Department, Tulio Maciel, there is a trend of increase in numbers of Brazilians’ trips to foreign countries, due to rising employment and income. “This is in keeping with the growth of the Brazilian economy,” he said.
Credit card spending by Brazilians abroad has accounted for 55% of total spending during foreign trips in July, as against a 54.2% rate recorded in the previous month. Whereas total spending grew by 43% in July this year compared with the same period of 2010, credit card spending grew by 27%.
This year, the Brazilian government raised the Tax on Financial Operations (IOF) for credit card purchases abroad. The decree, published on the Official Gazette on March 28th, raised the IOF on purchases using credit cards in foreign countries from 2.38% to 6.38%. The measure became effective 30 days after the decree was published, with the intention of cutting down credit card spending by Brazilians on foreign trips.
*Translated by Gabriel Pomerancblum
