Brasília – The inflow of dollars in Brazil exceeded the outflow by US$ 5.622 billion from March 1st to 16th, according to figures disclosed this Wednesday (21st) by the Central Bank (BC). From January 1st until March 16th, the surplus amounts to US$ 18.609 billion, including a US$ 7.283 billion surplus in January and US$ 5.705 billion in February. Last year, during the same period, the surplus was much higher, at US$ 34.66 billion. In other words, from January 1st to March 16th this year, there was a 46.31% decline in the surplus compared with the same period of 2011.
This month, investment in bonds, remittances of profits and dividends to foreign countries and foreign direct investment, among other operations, have shown a US$ 561 million surplus. The flow of trade, i.e. export and import operations also showed a surplus, at US$ 5.061 billion.
The strong flow of dollars into the country has forced the government to adopt measures aimed at protecting the real (Brazilian currency). Modifications in the period required for the 6% Tax on Financial Operations (IOF) to be levied on foreign loans, for instance, caused the dollar to go up to approximately 1.80 real.
In early March, the period for the tax had been increased from two to three years; this month, it was raised once again to five years. In practical terms, this means the money will have to stay in the country longer to avoid taxation, discouraging short-term money.
*Translated by Gabriel Pomerancblum
