LatinNews Daily - 09 July 2020

* Brazil’s central bank (BCB) has released its latest figures on foreign exchange flows, which show that the country saw record levels of foreign capital outflow from the financial markets in the first six months of 2020. Between January and June this year, there was a net outflow of US$38.14bn, with investors withdrawing a total US$301.61bn from Brazilian markets over this period, while US$263.47bn flowed into the country’s financial markets. Net foreign capital outflow reached a peak of US$14.86bn in March. This capital flight reflects the effects of the coronavirus (Covid-19) pandemic in Brazil, although economists also point to historically low interest rates and growing political risk as contributing factors. 

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