Brazil registers US $ 4.25 billion outflow in August, says Central Bank

The withdrawal of dollars from the Brazilian economy surpassed the inflow of funds by US $ 4.250 billion in August, the Central Bank said on Wednesday. This was the country's first outflow of foreign exchange since March this year, in five months. The inflow of dollars occurs when investors send money to Brazil for financial investments or investment in companies, for example. The dollar comes out when those investors withdraw funds from Brazil and usually apply in other countries. These transactions occur through remittances made by banks contracted by these investors. However, in the accumulated of this year, until the end of August, the Central Bank reported that US $ 24.178 billion entered the Brazilian economy.
The exit of dollars would favor, in theory, the high of the quotation of the American currency in relation to the Real. That is because, with fewer dollars in the market, its price would, in theory, tend to move forward. In August, in fact, there was an increase of more than 8% in the dollar quotation. In the first eight months of the year, the dollar accumulated a 22.89% increase over the real. According to market analysts, in addition to the flow of dollars, other factors influence currency prices, such as the political tensions resulting from the elections, the gradual process of raising US interest rates, which tends to attract capital into that economy, and trade disputes between countries, as well as financial speculation.
The Central Bank holds in this session an auction of up to 10,900 traditional foreign exchange swaps, equivalent to the future sale of dollars for rollover of the October maturity, totaling US $ 9,801 billion. If you keep this daily offer and sell it by the end of the month, you will have made the full roll.