Brasília – The flow of foreign exchange (inflow and outflow of dollars in the country) early this year recorded a surplus of US$ 4.099 billion, according to information disclosed today (12th) by the Brazilian Central Bank (BC).
From January 3rd to 7th, the foreign exchange flow recorded a surplus of US$ 477 million, whereas the flow of finance reached US$ 3.623 billion, with stronger dollar inflows on the 6th and 7th.
Investors have increased their financial investment in the country as a result of the BC’s announcement that it will increase the compulsory deposit on bank’s short positions at volumes higher than US$ 3 billion.
The decision will only become effective in April, so the dollar inflow into Brazil has increased to take advantage of the higher interest rate. Thus, the dollar-to-real (Brazilian currency) ratio on the spot market goes down. As a result of the appreciated currency, Brazilian exports become less competitive on the international market.
*Translated by Gabriel Pomerancblum
