posted Aug 12, 2017, 11:23 AM [ updated Aug 12, 2017, 11:25 AM ]
JOANA CUNHA – São paulo – 03/Aug/2017
THE NEW MIGRATORY WAVE OF BRAZILIANS DISLIKED WITH THE POLITICAL SCENE OF BRASILIA CONTRIBUTED TO TRIPLE THE AMOUNT OF MONEY TRANSFERRED FROM THE COUNTRY TO THE UNITED STATES IN THIS YEAR.
The volume of funds sent by individuals from Brazil to individuals in the USA grew 227% in the first half of 2017, to US$ 408 million, according to the Brazilian Central Bank.
Part of this movement is explained by the new migratory movement of Brazilians to the USA: with a more elitist profile, in which their businesses in Brazil support the american life.
According to Leonardo Freitas, a partner at Hayman Woodward, a consulting firm specializing in immigration and cash flow, part of the Brazilians who immigrate have no source of income in the USA, and need to support themselves until they can invest in a dollar-based business.
“The resources that enter the USA comes from income from a business or company maintained in Brazil, or from retirement or investments.” The country’s high interest rates are still attractive. They invest in Brazil and use the high return on capital to send part of the income to the USA, to pay for the permanence in America” says Freitas.
The Central Bank does not detect the use of these resources, but informs that it is not for loans, financing, or purchase or sale of goods or services.
“There is a large number of low-amount operations, and it is likely that a significant part of the resources is used for consumption” the agency says.
Fernando Mello, partner at IMGroup, says that when they noticed the demand, his company began to assist the emigration of Brazilian families.
According to him, the current emigrant has a different profile than the one observed in the waves of Brazilian who left for the United States in the 1980s.
If in the past Brazilians went in search of money to send to relatives who stayed here, today the resources take the opposite direction.
“Now it is about families with assets, couples from 40 years old, with a much less improvised process.
Before leaving Brazil for good, these families usually send their teenagers to study. While the parents do not move, those children are maintained through those transfers.
Like with their children, theirs financial resources can be sent in advance for investments. Mello himself sent his sons to study abroad before leaving Brazil years ago.
Investment in real estate may also have boosted the volume, according to Fernando Pavani, president of BeeCâmbio, which specializes in online remittances.
“Brazilians bought assets there and they generate fixed expenses, such as sending money to an employee to pay the electricity bill or for that employee’s salary” says Pavani.
Santander noticed the increase in remittances, according to director Luiz Masagão. “The apps made it much easier. Today it can be done on the cell phone: sending money to a family member, paying for real estate expenses, medical expenses, etc”.
Such growth did not have the USA as an exclusive destination. Personal remittances overseas from Brazil in general also grew, although to a lesser extent: 74%.
Bolivia was the second largest destination, with 7% of the total money sent abroad, compared to 44% of the United States.
Personal transfers follow common trading rules in the foreign exchange market. The money is delivered in Brazil, in Reais, and received abroad in foreign currency.