Brasília – This Monday (27th), the Brazilian Central Bank lowered its projection of foreign investment in stocks and bonds from US$ 15 billion to US$ 7 billion in the country this year. “Inflow into stocks and bonds has been relatively low this year,” said the head of the Economic Department at the Central Bank, Tulio Maciel. According to him, there is greater uncertainty in the international market, which leads to lower investment in shares.
With regard to fixed income, Maciel claimed that the expectation has not changed substantially because the raised Tax on Financial Operations (IOF, in the Portuguese acronym) on this type of investment took place in October 2010. Thus, the current estimate already considers the increased tariff.
From January to May, total foreign investment in stocks and bonds reached US$ 3.370 billion, as against US$ 8.099 billion in the same period of 2010. Investment in fixed income bonds traded in Brazil recorded an outflow of US$ 731 million, from January to May, as against a net inflow of US$ 2.154 billion.
The Central Bank also disclosed its estimate for foreign direct investment inflow in Brazil, i.e. funds allocated to the productive sector of the economy. The forecast has been maintained at US$ 55 billion this year. From January to May, foreign direct investment reached US$ 26.955 billion, as against US$ 11.330 billion in the same period of 2010.
*Translated by Gabriel Pomerancblum
