Remittances Abroad Surpass US$ 1 Billion and Reach Record High in First Semester

08/22/2018 - 16h14

With the surge of Brazilians going abroad to immigrate or study, remittances from Brazil to other countries surpassed US$ 1 billion in the first semester. It's the largest volume ever recorded by Brazil's Central Bank, which started tracking these transactions in 1995.

This trend, caused the perceived lack of public security, hopelessness with the recession and the uneasiness with the next presidential elections, has been growing stronger since last year.

According to real estate companies, currency exchanges and money transfer services, this leap in remittances shows that the funds are used not only to suport immigrants or students, but also to purchase real estate or open small businesses.

There's no limit to the amount of money that individuals can send abroad, according to the Central Bank. But banks and brokerages tend to require proof of origin if the sums are too high or incompatible with the sender's income or assets.

Brazil's Internal Revenue Service also tracks these transactions.

One detail calls attention: remittances to the United States, the main destination for money transfers, dropped by half. The decrease was caused, sources say, by the dollar's appreciation against the Brazilian real.

Portugal and Canada are the top countries receiving remittances from Brazil, with increases of 230% and 228.4%, respectively, in comparison of the same period last year.

Translated by NATASHA MADOV

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