MercoPress. South Atlantic News Agency

Brazilians overseas assets: 82,7 billion US dollars

The total of declared assets held by Brazilians residents overseas reached 82,7 billion US dollars last year. They are distributed among 120 countries but concentrated in fiscal paradises such as Cayman Island, Virgin islands and Bahamas, according to the Central Bank Brazilian Assets Overseas Census.

However United States remains as the main destination for Brazilian deposits overseas totalling 16,4 billion US dollars in 2003.

Paulo Sergio Cavalheiro from the Central Bank said the purpose of the census was not taxing people or companies with assets overseas but rather measuring the internationalization of the Brazilian economy. "It's no crime holding assets overseas. The irregularity comes when the origin of the money, if declared or not. As to Cayman and Bahamas they are countries with legal systems with their own rules", indicated Mr. Cavalheiro.

The three major groups of overseas assets correspond to direct investments, deposits or investment portfolios. The census information helps the Brazilian government in formulating economic policy and exchange money rules. The 82,7 billion of 2003 are 14,3% higher than the 72,3 billion US dollars of 2002 with a significant increase (108%) in deposits overseas which jumped from 7,9 to 16,4 billion US dollars.

Apparently Central Bank purchases of foreign currency equivalent to 6,6 billion US dollars for repaying the country's debt had an impact in the doubling of overseas deposits.