Net money inflow to Brazil closes 2021 with best result in 6 years – Central Bank

RIO DE JANEIRO, BRAZIL – Brazil recorded in 2021 the highest net inflow of foreign currency through the contracted exchange rate in six years, equivalent to just over US$6.1 billion, after three consecutive years of negative balances, Central Bank data showed Wednesday.

The foreign exchange flow was in surplus by US$6.134 billion year-to-date, the best result since 2015 (+US$9.414 billion).

The dollar surplus, however, represents a modest volume compared to the US$73.686 billion lost between 2018 and 2020. In 2020 alone, the deficit had been US$27.923 billion.

The positive flow in the year 2021 was limited by a strong outflow of funds in December of US$9.946 billion–the most significant for any month since December 2019 (-US$17.612 billion).

With the stampede of currency last month, banks had to provide liquidity, which brought their short position in the currency in the spot market to US$20.668 billion, the highest since March, when it stood at US$21.081 billion.

Throughout last year the Bacen settled the sale of US$11.982 billion on the spot market, of which US$4.837 billion only in December, a month with a traditional increase in outflows from the country.

Considering line operations, the Central Bank settled the repurchase of US$4.9 billion in 2021.

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