09/18/2008 07h54
Flow of foreign capital to Brazil grows regardless of the crisis
Gazeta Mercantil - 09/18/2008
Notwithstanding the worsening of the crisis faced by the international financial markets, the flow of foreign capital to Brazil increased in the first two weeks of this month. According to data of the Central Bank, the net inflow of resources (difference between the cash that entered the country and the remittances made abroad) was US$ 4.329 billion in this period. In August, the Central Bank registered an inflow of US$ 1.944 billion in the country. In the year, the accumulated balance is positive at US$ 18.714 billion. This month, the trade balance continues being responsible for most of the positive result assessed by the Central Bank. Between the 1
st and 12
th day of the month, the foreign trade operations brought US$ 3.605 billion to the country (deducting the payments made by importers). The greatest variation, however, occurred exactly in the so-called financial operations, which include foreign loans and investments. After presenting negative results for five consecutive months, the flow of foreign exchange in this segment is positive at US$ 725 million this month. According to technicians of the Central Bank, the remittances of profit and dividends made by multinational companies installed in Brazil do not have anymore the pace of growth seen in the last months, which helps explain the surplus in the operations. Besides, foreign investments in government bonds and in the national productive sector continue high, regardless of the crisis. The activity at the BM&FBovespa itself has given signs of improvement. Notwithstanding the fall suffered by the Stock market, the evasion of foreign investors in the first two weeks of the month reached R$ 900 million (US$ 552 million). In July, such evasion reached more than R$ 7 billion (US$ 4.3 billion).
