Brazil Current Account
|Low||$-1.680 B||$-4.929 B||
Current Account, together with Capital Movements, are the main factors responsible for the Brazil's Balance of Payments. The balance of payments is managed by the Central Bank of Brazil, which makes the necessary adjustments through the devaluations of the exchange rate, reduction of the level of economic activity, tariff restrictions and subsidies to exports, increase of the internal rate of interest, control of the outflow of capital abroad and control of income from abroad.
Current Account is the sum of all the operations of Brazil with the other countries, including the accounts of the income and expenses of the trade balance (such as exports and imports), the service accounts that include the interest paid, international trips when paid by the state, transportation, insurance, profits, dividends received, and miscellaneous services. The costs of presidential ceremonies and unilateral transfers are also included.
Capital movements are the inflows and outflows of financial assets through autonomous movements, attracted by the possibilities of investments, such as loans granted by banks and foreign suppliers for current transactions, exports, imports, as well as short and long term loans.
The balance of current transactions indicates whether the country exports or whether it imports capital. A positive balance (surplus) indicates a higher capital exports, increasing the country's reserves. A negative balance (deficit) indicates more imports of capital in the country, decreasing reserves. When there’s an equilibrium in current transactions, it means that the amount of foreign currency that left the country is practically the same as that entered, maintaining the stability of the reserves level.
The Central Bank of Brazil (BCB) monitors and supervises the financial system and executes monetary, exchange and credit policies. Every month, a report is published with the External Sector Statistics, which includes the Balance of Payments, which reflects the current transactions.
This indicator favors the Brazilian real (BRL) when it has a value higher than the forecast.
The chart of the entire available history of the "Brazil Current Account" macroeconomic indicator. The dashed line shows the forecast values of the economic indicator for the specified dates.
A significant deviation of a real value from a forecast one may cause a short-term strengthening or weakening of a national currency in the Forex market. The threshold values of the indicators signaling the approach of the critical state of the national (local) economy occupy a special place.
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