Brazil's dollar net outflow hits 18-month high

Brazil registered a net outflow of 4.279 billion U.S. dollars in June, the highest level in 18 months, the Central Bank said on Wednesday.

The previous high was recorded in December 2008, when the international financial crisis peaked, with a net outflow of 6.373 billion dollars.

The only other month so far this year that had a dollar net outflow was in February (399 million dollars). In June 2009 there was a net inflow of 1.076 billion dollars.

The primary cause for the dollar net outflow in June 2010 was a cash net outflow of 3.491 billion dollars, while trade net outflow reached 788 million dollars in the same month.

Figures released by the central bank also show that the dollar net outflow continues in July. During the first two days of July, 735 million dollars were sent abroad.

From January to July 2, however, the central bank recorded a net inflow of 2.628 billion dollars against 1.758 billion dollars recorded a year ago.

The bank added that purchases of U.S. dollars in the spot market buoyed the country's international reserves by 1.92 billion dollars in June.

Source:Xinhua