Dollar hike caps Brazilians' spending abroad

A dollar hike has been a cap on the amount Brazilians have been spending on foreign travel, the head of the Central Bank's Department of Economics, Tulio Maciel, said earlier this week. In October, outbound traveler expenditures abroad declined 7.4% from $2.294 billion to $2.124 billion.

Foreign travelers have also spent less in Brazil, $488 million in October compared to $533 million in the same period of 2013. This amounts to a net foreign travel expenditure deficit of $1.6 billion, 7% down from October 2013.

Maciel pointed out that the decline in foreign travel expenditure reflects a dollar appreciation of 15% over the past three months. With a month-to-date bottom line of $840 million by November 20, the trend is likely to continue.

Translated by Mayra Borges

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