I - Balance of Payments - February 2015
The balance of payments posted a surplus of US$1 billion in February. The current account posted a deficit of US$6.9 billion, accumulating, over twelve months, a negative balance of US$89.9 billion, which corresponds to 4.22% of GDP. The financial account posted net inflows of US$7.6 billion, highlighting foreign direct investments (FDI), US$2.8 billion, and foreign portfolio investments, US$2.2 billion.
The service account turned in a deficit of US$2.8 billion in February, 18.5% lower than in February 2014. Net expenditures on transportation added up to US$607 million, dropping by 11.8% in in the same comparison basis. Net expenditures on international travels totaled US$970 million, dropping by 26.7% over February 2014, as a result of a 22.9% falloff under Brazilian tourists' expenditures abroad and a 14.4% decline under foreign travelers' expenditures in Brazil. Net expenditures on equipment rentals grew by 7% to US$1.6 billion. It should be emphasized the reductions under net expenditures on royalties and license fees, 38.9%, and on computer and information, 26%.
Net remittances of income abroad added up to US$1.4 billion in the month, dropping by 29% over February 2014. Net expenditures on profits and dividends added up to US$727 million, as compared to US$1.3 billion in February 2014, whereas net expenditures on interests added up to US$690 million, dropping by 2.4% in the same comparison basis. Net remittances of income on direct investments totaled US$639 million, 47% lower than in February 2014. Net remittances of income on portfolio investments added up to US$377 million, consequent upon net expenditures on profits and dividends, US$298 million, and interests on fixed-income securities, US$79 million. Net expenditures related to income on other investments added up to US$401 million, a 12.2% growth over February 2014.
Unilateral transfers posted net inflows of US$158 million, 11.2% up from February 2014. The gross inflow of income for the maintenance of residents added up to US$133 million, a drop of 9.8% in the same comparison basis.
Brazilian direct investments abroad posted net inflows of US$264 million, comprising net investments of US$561 million in the acquisition of equity capital participation in companies abroad and net inflows of US$297 million regarding intercompany loans from affiliated companies abroad to their Brazilian headquarters.
Foreign direct investments registered net inflows of US$2.8 billion. Net inflows regarding the acquisition of equity capital in Brazilian companies reached US$1.3 billion, whereas net disbursements of intercompany loans totaled US$1.5 billion. Over twelve months, net FDI inflows added up to US$60.1 billion, corresponding to 2.82% of GDP.
Foreign portfolio investments posted net inflows of US$2.2 billion in February, comprising net inflows of US$1.2 billion in stocks of Brazilian companies and US$998 million in fixed-income securities. Net inflows regarding fixed-income securities negotiated in Brazil reached US$2.4 billion. Net amortizations of public securities negotiated abroad, including repurchases on the secondary market, added up to US$579 million. Net amortizations of notes and commercial papers reached US$800 million in the month. Operations regarding short-term fixed-income securities negotiated abroad posted net amortizations of US$37 million.
Other Brazilian investments abroad posted net returns of US$100 million, comprising, among others, a reduction of US$429 million in the balance of deposits held by Brazilian banks abroad, and an expansion of US$1.1 billion in deposits held by nonfinancial companies abroad. Net inflows regarding short-term trade loans and credits granted abroad added up to US$871 million in the month.
Other foreign investments in Brazil posted net inflows of US$4 billion. Trade suppliers' credits totaled net disbursements of US$2 billion, focused on short-term transactions. Medium and long-term loans totaled net inflows of US$903 million, especially net disbursements from direct loans, US$649 million; and buyers' loans, US$176 million. Short-term operations generated net disbursements of US$1 billion.
II - International reserves
International reserves in the liquidity concept totaled US$372.1 billion in February 2015, a US$20 million reduction as compared to the previous month. In February, the stock of repurchase lines reached US$9.6 billion, dropping by US$800 million against January. Income from earnings on reserves added up to US$197 million. Price variations reduced the stock by US$708 million, while parity variations increased the stock by US$482 million. In cash concept, the stock of reserves reached US$362.5 billion in February, up US$780 million from January.
III - External debt
The estimated gross external debt for February totaled US$348 billion, a decline of US$484 million as compared to December 2014. The estimated long-term external debt reached US$289 billion, dropping by US$1.8 billion, whereas the short-term indebtedness added up to US$59 billion, an expansion of US$1.3 billion in the period under analysis.
Among the factors underlying the long-term external debt variation in the period, it should be emphasized loans taken by the nonfinancial sector, US$1.1 billion; amortizations of debt securities held by the financial sector, US$1 billion; and the reduction consequent upon parity variations, US$2 billion. The variation of the short-term external debt in the period is mainly due to short-term loans taken by the financial and nonfinancial sectors, US$483 million, and US$876 million, respectively.