Category: Macroeconomy/Finance

Information regarding Brazil’s finance sector and the country’s macroeconomy.

Brazilian Central Bank hold an auction of foreign currency swap in $1 billion

The announcement by the Central Bank of Brazil happened with the dollar close to R$ 4.55, of which it will make today (5) an exchange swap auction of up to $1 billion, but it did not satisfy the market due to the volume and timing. Therefore, the currency continued to rise to close at R$ 4.58. The Real has been showing more severe pressure than its peers against the dollar due to the Selic cut, with the chance of falling by 0.5 points in March.

Brazil’s GDP grows 1.1% in 2019, Bolsonaro’s 1st year

In the first year of the Bolsonaro government, GDP advanced 1.1%. The result of the year was driven by the growth of private investments, which increased by 2.2%. On the supply side, the highlight was the services sector, which increased 1.3%. The recovery of the labour market, although slow, contributed to the results.

Brazil’s beef exports fell by around 3% due to Covid-19

Brazil’s meat exports fell about 3% in February compared to January and fell 6% compared to the same month of 2019, amid a slowdown in purchases by China. According to data from the Foreign Trade Secretariat (Secex) compiled by the entity, shipments of the product (fresh and processed) totaled 131,227 tonnes last month, against 135,451 tonnes handled in January.

Dollar has a new record and rises to R$4.51

The dollar had the tenth consecutive high session and closed for the first time at the level of R$4.50. On a day noticeable by strong volatility, the dollar dropped to R$4.45 shortly after the FED – American Central Bank – cut the interest rate early this Tuesday, but then went up again with the worsening of the international market and the possibility of more interest rate cuts in Brazil to meet the coronavirus effects.

Brazil exports 5.12 mn tons of soybean in February

The export of soybeans from Brazil in February totaled 5.12 million tonnes, slightly lower than the same month last year (5.27 million), but setting the greater volume shipped since July 2019 (7.4 million) according to data released by the Ministry of Economy’s Foreign Trade Secretariat. Source: Reuters

Brazil imports 335,000 tons of pesticides in 2019

Brazil has imported almost 335,000 tons of insecticides, herbicides and fungicides in 2019. The volume is 16% higher than in 2018 and is a record for the historical series begun in 1997, according to data from the Ministry of Economy. The growth in imports follows the growth in sales of agrochemicals in the country.

Financial market reduces estimate of Brazilian GDP to 2.17% for 2020

The estimate for the growth of the Gross Domestic Product (GDP) fell from 2.20% to 2.17% in 2020. The information is contained in the Focus bulletin, a weekly survey by the Brazilian Central Bank (BC), which brings the projections of financial institutions to the main economic indicators. The market estimates that the GDP for the following years, 2021, 2022 and 2023, remain 2.50%.

B3 companies lose $80.4 bn in market value with coronavirus

The risk aversion registered in global markets last week also did not spare Brazilian companies listed on B3. They lost R$361.63 billion ($80.4billion) in market value in the three days that the Brazilian stock exchange was open after Carnival, according to a survey by Economatica. Petrobras was the company that lost the most value in the period: it ended last Friday (28) worth R$ 48.8 billion (10.8 billion) less than a week before.

Credit card companies starts using dollar exchange rates on the day of purchase

Brazilians who using credit cards abroad will be able to more precisely estimate the cost of international purchases. The Central Bank’s determination (Circular nº 3918) that forces card operators to use the dollar quotation on the day of purchase – and no longer that on the invoice’s due date – came into effect on March 1st, to convert the amount into Brazilian Real. The change aims to give more predictability to consumers who use the card abroad or who make purchases on foreign websites.

Brazilian startups create model in which sponsors fund donations from individuals to NGOs

A new business model created by Brazilian startups allows people to donate money to social causes without spending a cent. This is possible thanks to partnerships between these companies and sponsors. The application converts the money generated with digital ads into donations for four NGOs, with a focus on access to clean water, food, medicines and basic health. Through the App, the user receives news with a positive content and when accumulating this fictitious money, the user can choose which of the four NGOs he wishes to donate.