Brazil Foreign Exchange Flows
Low | $-4.795 B | $-2.532 B |
$-1.148 B
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Last release | Importance | Actual | Forecast |
Previous
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$-3.820 B |
$-4.795 B
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Next release | Actual | Forecast |
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The Foreign Exchange Flow is related to the amount of foreign currency entering or leaving Brazil, calculated as the sum of the balances of the financial flow with the commercial flow.
Financial Flow is the transfer of profits and dividends to other countries, investments in securities and direct investments of foreign institutions, among other operations. It reflects practically all exports and imports from Brazil.
The Central Bank (BC) publishes weekly reports on the volume of foreign money entering and leaving Brazil, converting the amounts to US dollars.
Foreign Exchange Flow is positive when the total capital that entered Brazil is higher than the capital that went abroad, based on the US dollar.
Foreign Currency Flow is negative when the total capital that entered Brazil is lower than the capital that went abroad, based on the US dollar.
Countries aim for a positive exchange rate flow since it stimulates domestic and foreign investment growth, which is ideal for financing any current account deficits.
A positive Foreign Currency Flow appreciates the Brazilian real against the US currency, increasing the dollar supply in the country and reducing the buyers' pressure.
A negative Foreign Currency Flow depreciates the Brazilian real against the US currency, reducing the dollar supply in the country and increasing the buyers' pressure.
In short, this indicator is closely related to the purchasing power of the population and foreign trade, so that the indicator growth may have a beneficial effect on the quotes of the Brazilian real.
Last values:
actual data
forecast
The chart of the entire available history of the "Brazil Foreign Exchange Flows" 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.