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LatinNews Daily - 27 May 2020

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In brief: Foreign investment levels plunge in Brazil

* Brazil’s central bank (BCB) has released the latest figures for the balance of payments in the external sector, which show that foreign investment in Brazil totalled US$234m in April. This compares with US$5.107bn worth of foreign investment in April 2019. It is the lowest level of monthly foreign investment since July 2016, and the smallest foreign investment figure for the month of April since 1995. Fernando Rocha, the head of the BCB’s statistics department, has said that the slump in foreign investments for the month of April represents a delay rather than a cancellation of inflows. “It appears to be a postponement in operations during the month which concentrated many uncertainties on what is happening in the Brazilian and world economy”, Rocha said. However, external analysts note that, added to this year’s large outflows of foreign capital, the dip in foreign investment is a reflection of the government led by President Jair Bolsonaro’s poor handling of the coronavirus (Covid-19) pandemic, exacerbating political and economic uncertainty.