Brasília - Current transactions in the balance of payments registered a US$ 1.8 billion surplus in July, lifting the trade surplus to US$ 3.5 billion, according to the Monthly Report on the External Sector, issued today by the Brazilian Central Bank (BC).

The report demonstrates that last month's financial account presented a US$ 1.5 billion deficit, despite the net inflow of US$ 1.6 billion in foreign direct investments, the best result so far this year, well above the US$ 737 billion in foreign investments in June and superior to the US$ 1.2 billion registered in July, 2003.

Net income remittances abroad amounted to US$ 1.5 billion, 13% more than in the corresponding month last year. Remittances associated with direct investments totaled US$ 508 million (52% more than in July, 2003), portfolio investment income accounted for US$ 826 million, and income from other investments came to US$ 178 million.

As has been the case in recent months, the BC report shows that the consolidated foreign debt through May continues to decrease. The debt totaled US$ 207.2 billion, US$ 6.2 billion (2.9%) less than in March.

Agência Brasil
Reporter: Stenio Ribeiro
Translator: David Silberstein
08/25/2004