By Lise Alves, Senior Contributing Reporter
RIO DE JANEIRO, BRAZIL – The uncertainties of the new administration as well as the appreciation of the U.S. dollar in relation to the Brazilian real led many Brazilians to reduce their spending abroad in November, according to Brazil’s Central Bank (CB).
Foreign expenses registered by Brazilian travelers decreased by thirteen percent from the same period last year, totaling US$1.385 billion.
According to officials, the average dollar exchange rate in November was R$3.79/US$1.00, against R$3.26/US$1.00 during November of 2017.
“There was an 18.7 percent devaluation in the exchange, which increases the total expense of Brazilian travelers abroad,” said the head of the Statistics Department at Brazil’s Central Bank, Fernando Rocha.
The expenses of foreigners tourists in Brazil during the same period totaled US$464 million. With the expenses of Brazilians abroad greater than those of foreigners in the country, the international travel account was negative by US$921 million last month, according to CB officials.
According to Rocha, the reduction of expenditures in the international travel sector contributed to the reduction of the deficit in the balance of payments services account.
International travel data are part of the services account (international travel, transportation, equipment rental, insurance, among others) of current transactions, which are the purchases and sales of goods and services and transfers of income from the country to the world.
After a registered surplus of US$329 million in October, the result of current transactions was negative by US$795 million in November.