Brazil recorded a negative foreign exchange flow of $15.918 billion in 2024, marking the third-largest annual net outflow of dollars in the historical series tracked by the Central Bank, which began in 2008. The data is preliminary, covering up to December 27.
This result is surpassed only by the figures recorded in 2019 and 2020, during Jair Bolsonaro’s administration, when the net outflows were $44.768 billion and $27.923 billion, respectively. Those years were marked by lower interest rates, exchange rate volatility, and the Covid-19 pandemic.
In 2024, the dollar rose 27% against the real, closing the year at R$6.18.
The period was characterized by heightened market concerns over Brazil’s fiscal outlook. “This is the main reason for the significant outflow of dollars,” says Wagner Varejão, a specialist at Valor Investimentos.
According to financial analysts, President Lula’s administration has been addressing rising expenditures with one-off revenue measures, threatening the sustainability of the fiscal framework and the stability of public accounts.
The economic stability of a country is one of the primary factors considered by international investors when making investment decisions.
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Publish date : 2025-01-03 00:03:00
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