I - Balance of payments - June 2014
The balance of payments turned in a surplus of U$3.8 billion in June. Current transactions posted a deficit of R$3.3 billion in the month, accumulating US$81.2 billion in twelve months, equivalent to 3.58% of GDP. Regarding the financial account, it should be highlighted net inflows of foreign portfolio investments and foreign direct investments (FDI), amounting to US$6.7 billion and US$3.9 billion, respectively.
The service account registered a deficit of US$3.4 billion in June, 4.5% up from the same month in 2013. Net expenditures on international travel reached US$1.2 billion, a decline of 17.3% against June 2013. This result was due to increases of 76% under expenditures by foreign travelers in Brazil and 4.9% by Brazilian tourists traveling abroad. Net expenditures on transportation added up U$702 million in June, a decline of 11% against the same month in 2013. Among the other items of the service account, it should be emphasized net expansions of equipment rentals, 69%, and computer and information, 32.3%; as opposed to a decline of 7% in net expenditures on royalties and license fees, in the same comparison basis.
Net remittances of income abroad totaled US$2.5 billion in the month, 24% below the result of June 2013. Net remittances of interests and dividends added up US$1.7 billion, a decline of 23.8% when compared with the same period in 2013. Net expenditures on interests reached US$808 million, a reduction of 24.9% in the period under analysis. Net outflows of income on direct investments reached US$1.7 billion, as against US$2.1 billion in June 2013. Net remittances of income on portfolio investments totaled US$202 million, a reduction of 26.3% in the same comparison basis, while income on other investments reached US$602 billion, a decline of 33.3%.
In June, unrequited transfers registered net inflows of US$128 million, 53.3% below the result of June 2013, US$ 275 million. Gross inflows of income for the maintenance of residents added up R$157 million, for a reduction of 9% in the same comparison basis.
Brazilian direct investments abroad posted net returns of US$719 million in June. Net purchases of equity capital participation in companies abroad added up US$539 million, while net inflows of intercompany loans reached US$1.3 billion.
Net FDI inflows reached US$3.9 billion in the month, comprising US$3.5 billion of net inflows of equity capital participation in companies in Brazil and US$387 million related to net disbursements of intercompany loans. Over the past 12-month period up to June, net FDI inflows reached US$63.3 billion, equivalent to 2.79% of GDP.
Foreign portfolio investments registered net inflows of US$6.7 billion in June, composed of net inflows of US$1.6 billion in shares of Brazilian companies and US$5.1 billion in fixed-income securities. Net inflows of investments in fixed-income securities negotiated in the country added up US$4 billion. Public bonds negotiated abroad posted net amortizations of US$13 million. Net inflows of notes and commercial papers reached US$1.1 billion in the month, registering disbursements of US$1.5 billion and amortizations of US$422 million. Operations with short-term fixed-income securities negotiated abroad posted disbursements of US$31 million.
Other Brazilian investments registered net inversions abroad of US$4.3 billion in June, including a reduction of US$2.1 billion in the balance of deposits held by Brazilian banks abroad and an expansion of US$1.2 billion in deposits of nonfinancial companies. Net concessions of loans and short-term commercial credits abroad totaled US$5.1 billion in the month.
Other foreign investments in Brazil totaled net inflows of US$88 million in June. Suppliers' credits registered net amortizations of US$684 million, concentrated in short-term operations. Medium and long-term loans totaled net inflows of US$598 million, with emphasis on direct loans, US$1.5 billion, and organizations' loans, US$302 million.
II - International Reserves
International reserves in the liquidity concept totaled US$380.5 billion in June, increasing US$1.4 billion against May. In June, the stock of repurchase lines reached US$7 billion, declining US$3.4 billion when compared to May. Earnings on reserves reached US$289 million. Price changes reduced the reserve stock by US$28 million, while parity changes expanded reserves by US$1 billion. In the cash concept, the stock of reserves added up US$373.5 billion, an increase of US$4.8 billion against the previous month.
III - Foreign Debt
The estimated position for the gross foreign debt in June totaled US$330.2 billion, for an increase of US$10.1 billion against the March position. Estimated long-term foreign debt reached US$290.6 billion, up US$8.5 billion, while the short-term debt added up US$39.6 billion, an increase of US$1.5 billion against the position estimated for the first quarter of 2014.
The variation of the long-term foreign debt in the period may be explained by net inflows of long-term loans taken by the financial and nonfinancial sectors, US$1.7 billion and US$3.2 billion, respectively, and placements of long-term debt securities by the government, US$1.3 billion, and the financial sector, US$976 million. Parity variation increased the debt stock by US$353 million.