The government reduces the tax on 7 goods; Intense cold front in Brazil; Foreign investor returns to B3; Stage 2 “forgotten money” remains undated

The week ends with the passage of a very strong cold front through Brazil with expected impact on all regions of the country. In the mountains of Rio Grande do Sul and Santa Catarina, freezing rain with snow is forecast.

Read more: R$600 aid in 2023 depends only on tax reform, Guedes says.

The main issues in the economic sphere are the reduction of import duties on seven goods and the return of investors from other countries to the Brazilian stock exchange.

No. highlights this friday, 19, also note that the second phase of “forgotten money” continues without a start date. Check out more details.

Foreign investor returns to B3

In the first 15 days of August, foreign investors poured 11 billion reais into the Brazilian Stock Exchange (B3), raising Ibovespa by 10%. The move came after a flight of foreign capital between April and May and a dormancy in June and July.

The renewed interest is a result of the slowdown in the global economy and the deterioration of the political scenario and the economy of other emerging markets. According to economist Silvio Campos Neto of Tendências Consultoria, many investors fear a US recession.

Another thing is that the Brazilian asset is cheaper, which attracts those who want to invest. Jenny Lee, XP equities strategist, also notes the company’s strong performance in the second quarter. Partial data shows that 70% of Brazilian companies should perform better than expected on their balance sheets, echoing what happened to the components of the S&P 500.

However, analysts say it is impossible to predict whether the money will continue to come in from abroad. “We don’t know if they’re making a shorter-term bet or if it’s something more specific, because they believe that no matter who wins the election, the country usually doesn’t let things get completely out of hand,” says the economist. Silvio Campos Neto from Trends Consulting.

Import Tax Reduction

Camex (Chamber of Foreign Trade) said it has reduced import duties on motorcycle airbags, whey proteins, dietary supplements and other products. The decision comes into force on September 1.

Rates currently range from 11.2% to 35%, but next month they will range from zero to 4%. All selected products are included in the List of Exclusions from the Common External Tariff (LETEK).

The agency also reduced the common external tariff (TEC) of MERCOSUR by 10%, a levy that became final in November 2021. The new percentage is valid until the end of 2023 for approximately 80% of the tariff aggregate.

“Brazil views the modernization of the TEC as one of the pillars of a strategy to promote the country’s more active involvement in international trade in parallel with the improvement of the business environment, the expansion of the network of trade agreements and the reduction of tariff barriers to trade,” the Ministry of Economy said.

Camex’s decision will not affect Brazilian import tariffs, as the government pledged an additional 10% cut in May to mitigate the effects of the war between Russia and Ukraine.

A new intense cold front has passed across the country

The weather in Brazil turned cold again this week due to the passage of a strong cold front through all regions of the country. Rain, wind, hail and severe cold are expected in the coming days, according to forecasts from the National Institute of Meteorology (Inmet).

The cold that hit the South last Wednesday is now spreading to the Southeast, the Midwest and part of the North. Today the front will affect the climate of northern Goiás, the Federal District, Espirito Santo and Amazonas.

Thermometers on the coast of Bahia fall on the 20th, and since Saturday the cold has been losing strength in the Center-South. Only the interior of the country should continue with low temperatures.

Inmet is waiting for the snow to arrive in the Rio Grande do Sul and Santa Catarina mountains. In the states of the Southern region, in the west of São Paulo and in the south of Mato Grosso do Sul, frosts persist over the weekend.

Stage 2 of the receivables system is undated

The Central Bank planned to start the second stage of consultations on “forgotten money” in banks on May 2. Due to a strike by civil servants of the municipality, the date had to be postponed.

“Consultations with the Accounts Receivable System (SVR) are temporarily suspended for improvement,” the BC reports on the Accounts Receivable System (SVR) website.

Even with the end of the suspension for more than 40 days, there is still no forecast for the resumption of consultations and feedback. The organization only states that “the schedule and information about the new phase of the RIA will be disclosed in due course with due advance.”

About 8 million reais left by their owners in financial institutions can be redeemed. At the first stage, about 4 million reais became available.

From the second stage, it will not be necessary to plan the output, as was necessary before. In addition, the system includes seven new sources of resources.

Back to top button