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Central Bank of Brazil uses IMF guidelines for classification of virtual currency

The Central Bank of Brazil classifies buying and selling of virtual currency as buying and selling of assets in accordance with the guideline “Treatment of Crypto Assets in Macroeconomic Statistics” established by the International Monetary Fund (IMF). announced.

In July 2019, the current transaction deficit was 9.0 billion euros against the U.S. dollar, which was 4.4 billion dollars in July 2018. The positive balance of trade balance of goods was reduced from $3 500 000 000 to 1 600 000 000 dollars and the primary income deficit was increased, of which 5.5 billion IS dollars is US$ 7.9 billion. Euro 24.2 billion (1.31% of GDP) in the 12-month period ended July Total current transaction deficit, US$19 800 000 000 (1.06% of GDP) compared to the deficit, which ended in June.

In July, exports of goods to the U.S. dollar decreased by 20.00 billion euros, an 11.1% decline in the same month 2018. Based on this, imports of goods decreased by 2.9%, ranging from US$18 400 000 000. About Repetro, imports from July 2019 were valued at 1 600 000 000 dollars ($3.3 billion in July 2018). In July 2019 (US$ 1.2 billion) was identified during the same month of last year. The repealed acts are Repetro, imports increased by 7.2% and recycled exports by 5.8%, both during the year compared in July. Deposit exports decreased 4.7%, while imports increased by 0.4%, resulting in a reduction in the trade balance of 21.9%, which reached us $24.00 billion.

The service account deficit reached $3.0 billion in the month we reached, 1.9% lower than the July 2018 result. The court highlights an increase in the net cost of equipment rental, from $988 000 000 to $1 200 000 000, and increase net revenue from other professional services from $568 000 000 to US$674 000 000. The short reduction in the service deficit during this month brought down the accumulated deficit of the year by 33% till July.

In July 2019, the primary income deficit reached 7.9 billion euros, up from 54.9% compared to the same month last year. The increase in the monthly deficit resulted from a high net cost of profit and dividends, US$3 100 000 000, which amounted to 1.0 billion U.S. dollars, in July 2018. Total net interest spending totaled 4.8 billion euros, up 17.1% over the year. The accumulated primary income deficit in the year was summarized at $28 900 000, 14.4% more observed than the previous year.

Net sales of direct investment in the country (IDP) 7.7 billion euros, U.S. net profit 7.7.1 billion euros and 572 000 000 dollars in inter-group operations. In accumulated, net IDP tickets have been celebrated 0.45 billion, 17.1% US$38 over 400 000 000 over the same period of 2018. During the 12 months of July, IDP tickets totaled 94, 9 billion, corresponding to 5.09% of GDP (91, 8 billion and 4.93% of GDP from 12 months to June).

In July, there were net tickets of us$5.0 billion in portfolio instruments traded in the domestic market, highlighting the contribution of the public offerings of shares. In the year, by July, net inputs of US $14.1 billion in instruments traded in the domestic market were composed of positive flows in debt securities, US $11.2 billion, and in stocks and investment funds, us$2.9 billion. In the 12 months ended in July, the portfolio instruments traded in the domestic market amounted to net outputs of us$4.9 billion.

2. International Bookings
The stock of international reserves reached 385,8 billion in July 2019, corresponding to 118.2% of the gross external debt stock. The decline of $2.4 billion in the stock reserves of July, compared to June, was mainly due to the net concession of $1.6 billion in repurchase line operations, and of variations by prices and pars, with negative contributions of $420 million and $962 million, in order. The interest revenue contributed to raising stock reserves, $659 million.

3. Trade balance – Review and Cryptoassets
Exports and imports of balance sheet goods have as the primary source of primary data the Foreign Trade Secretariat of the Ministry of Economics (ME/Secex), although there are adjustments to the methodology of external sector statistics, with the use of Supplementary data. With the publication of this month’s statistics, the balance of payments trade balance was revised for the years 2018 and 2019, incorporating revisions disclosed in recent months by ME/Secex, after the implementation of the unique Portal for foreign trade.

The Committee on balance of Payments statistics, advisory body on methodology of statistics from the external sector to the Department of Statistics of the International Monetary Fund (IMF), recommended to classify the purchase and sale of Cryptoassets ( Specifically those for which there is no issuer) as non-financial assets produced, which implies their compilation in the balance of payments assets account. The cryptocurrency mining activity is therefore treated as a productive process. The recommendation was formalized in the text “Treatment of Crypto Assets in Macroeconomic Statistics” 1. Because they are digital, the Cryptoassets have no customs record, but the purchases and sales by residents in Brazil imply the conclusion of contracts of Câmbio2. The Export and import statistics of goods are therefore to include the purchases and sales of crypto-assets. Brazil has been a net importer of Cryptoactives, which has contributed to reducing the trade surplus in the balance of payments assets account.

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