Brasília – The outflow of dollars from Brazil exceeded the inflow this month, up to Friday (14), by US$ 4.215 billion, informed on Tuesday (18) the Central Bank of Brazil. In November, the foreign exchange flow was US$ 4.876 billion positive (greater inflow than outflow).
The negative balance came both from the financial flow (investment in papers, transfer of profits and dividends abroad and direct investment, among other operations), with US$ 1.648 billion, while the trade flow (operations related to exports and imports), resulted in a deficit of US$ 2.567 billion.
According to the head of the Economic Department at the Central Bank, Tulio Maciel, late into the year, “oscillations [in the flow results] are normal”. Maciel explained that in this period, transfers of profits and dividends from Brazil abroad are greater. Apart from that, international travel expenses, transport and equipment rent expenses also rise. He added that the “trade balance performance is below that observed last year”, with greater imports. According to Maciel, the negative balance also suffered influence of imports by Petrobras.
On Tuesday the Central Bank adopted measures to increase liquidity (funds available) of dollars in the country, publishing a statement altering compulsory collection, funds that banks are obliged to keep saved at the Central Bank, on exchange contracts.
With the measure, the Central Bank simplified the sale of foreign currency, which takes place when financial institutions bet on a drop in the US currency on the futures market. According to the new rule, whenever the market liquidity exceeds US$ 3 billion, 60% of the surplus should be collected in the form of a compulsory deposit. On defining a US$ 3 billion limit, the Central Bank has returned to the prior rule, established in January 2011. In July last year, the Central bank reduced the figure to US$ 1 billion. The new rule shall be valid starting on the 20th.
According to the Central Bank, in November, the exchange position of the banks was one of buying (showing their belief in higher exchange rates) at US$ 914 million. In December, up to the 14th, the position was inverted into one of selling, at US$ 3.651 billion.
On the 4th, the BC adopted another measure that can also expand the volume of dollars available in the country and influence exchange rates, which are rising. The Central Bank expanded the span for anticipated payment of export operations (PA). The span for anticipation, regarding the date of shipment or the providing of the service, rose from 360 days to 1,800 days (five years). The Central Bank informed that it has evaluated the market and noticed that these operations were lacking, despite the greater demand.
On November 22, the president at the Central Bank, Alexandre Tombini, said that Brazil has no formal or informal objective for exchange rates, but that it could adopt measures to solve a “temporary liquidity problem at the turn of the year”. According to Tombini, late in the year, the offer of dollars is usually lower than the demand, but this movement tends to revert early in the next period.
*Translated by Mark Ament
