The recent dollar appreciation against Brazil’s real maintained the slowdown facing the amount of money spent by Brazilian travelers overseas. In September, expenditures added up to $1.189 billion, down 30.7 percent from September 2017 ($1.716 billion), the country’s Central Bank reported Thursday (Oct. 25).
“Spending with trips was at its lowest since May 2016,” said Renato Baldini, Central Bank deputy head for statistics. He explained that travel expenditures are extremely sensitive to changes in the exchange rate. A more expensive dollar brings spending down as Brazilians put off their trips, cut their budget, or even call out their plans to go abroad.
Brazil’s average exchange rate went from $3,3 in September 2017 to $4.2 in September this year, Baldini stated.
From January to September, expenditures overseas sank to $13.875 billion, against last year’s $14.146 billion.
Revenues from foreigners coming to Brazil reached $373 million in September and $4.513 billion in the first nine months of 2018, compared to $407 million and $4.360 billion in the same periods in 2017, respectively.
Revenues and expenditures led to a negative international travel balance of $816 million in September, and $9.362 billion from January to September this year.