Despite the drop of almost 12% in the Ibovespa last year, foreign investments on the Brazilian stock exchange hit a record in 2021. The positive balance reached the mark of R$ 100 billion.
Three main reasons explain this high flow in 2021, said the economics analyst at CNN, Priscila Yazbek: devalued real, stock market crash and rising commodities.
The devaluation of the currency and the fall of the stock market make investments cheaper for foreigners, who see the B3 as “a large commodity exchange”.
In this way, as Yazbek explains, foreigners end up investing in stocks like Vale, Petrobras and not so much in domestic consumption stocks. So when commodities go up, it pulls the flow into our market.
The record of foreign investments belonged to the year 2009, which had R$ 50.7 billion in investments from abroad after government stimulus due to the global financial crisis of the previous year.
As of 2018, the US government removed the stimulus from the economy, which caused the balance to be negative in that same year and in 2019. The balance only became positive again in 2020, with investments of R$7.4 billion.
XP Investimentos, the brokerage firm that compiled the aforementioned data, said that foreign investment should continue to rise in 2022, as fiscal improvement is expected, a positive scenario for commodities and emerging countries and a continued economic recovery.
Priscila Yazbek stated that she spoke with Daniel Alberine, manager of CTM Investimentos, who explained why the stock exchange is so attractive to foreign investments.
According to him, as the American and Chinese economies will continue to grow in 2022, the flow should continue pointing to emerging countries, due to the cheaper price of assets. In addition, the country’s revenue is increasing, which minimizes the fiscal risk that has been causing concern.
Another fact highlighted by managers interviewed by the analyst is also that foreign investors tend to pay more attention to asset prices in the country and less to political noise, which is usually the focus of domestic investors.
Reference: CNN Brasil
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