Brasília – The current account transactions deficit of Brazil, one of the main indicators of foreign accounts, totalled US$ 1.766 billion in February, according to figures disclosed on Friday (23) by the Central Bank of Brazil (BC). In the same period in 2011, there was a US$ 3.482 billion deficit.
Current account transactions include purchases and sales of goods and services. In this figure, exports and imports – the balance of trade – are included. The balance of trade had a surplus of US$ 1.715 billion in February. On the other hand, the service account (international travels, transportation, equipment rental and others) was US$ 2.769 billion negative.
In the capital account (transfer of profits and dividends, payment of interest and wages), the result was US$ 875 million negative. Current unilateral transactions (donations and dollar transfers abroad made and received by the country, with no counterpart in goods and services) recorded an inflow of US$ 163 million.
When the country has a current account deficit, spending more than it receives, this result must be financed by foreign direct investment or loans abroad.
In January, foreign direct investment was US$ 3.648 billion. Another form of financing the current account deficit, foreign investment in capital markets (shares and fixed income papers), totalled US$ 1.147 billion.
*Translated by Mark Ament
