Brasília – Foreign Direct Investment (FDI) should reach US$ 7 billion in February this year. If the Central Bank forecast is confirmed, this will be the largest inflow of foreign funds into the productive sector in the period. The partial figures for the month, up to Wednesday (23), show that FDI inflow is US$ 6.7 billion. In January, this investment totalled US$ 2.956 billion.
According to the head of the Economic Department at the BC, Tulio Maciel, the growth in FDI is related to the "dynamism of the Brazilian economy, the solid fundaments of the economy". Maciel added that perspectives for coming years are also favourable due to sports events – the Olympics and World Cup – and investment forecasted for exploration of oil in the pre salt layer.
In the case of foreign investment in portfolio (shares and fixed income), there was net inflow (discounting outflow) of US$ 3.375 billion in January. The total investment in shares reached US$ 676 million in net inflow and, in the case of negotiations in the country, reached US$ 732 million. Partial figures for this month, up to Thursday (23), show net inflow of US$ 529 million in shares and US$ 774 million in those traded domestically.
In the case of fixed income in the country, there was net outflow of foreign investment of US$ 470 million in January, and US$ 39 million this month, to date.
Last year, the government changed the Tax on Financial Operations (IOF) levied on foreign funds turned to fixed income and to some operations on the futures market twice. Initially, the tax rose from 2% to 4%. Later, it was expanded from 4% to 6%. The objective was to contain the inflow of foreign funds into the country, which depreciates the dollar as against the Brazilian real.
*Translated by Mark Ament
