Brazil Sees Strong FX Inflows

Brazil experienced strong inflows in foreign capital in July and August, despite market turmoil that resulted in a 17% drop in the Bovespa between July 16 and August 16. “Partial data through August 21 showed a $6.1bn surplus, despite external turbulence,” says JPMorgan. “Strong FDI and booming equity investment sustained a hefty capital account surplus last July,” it adds. In general, unwinding of local positions by foreigners has been contained and the market technicals are improving, adds the shop. Outflows totaled $800m in the same period, JPM adds.