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BRASILINFORM

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APRIL 24, 2013, VOL. XXXI, NO. 1502

INDEX

The Financial Market

Selic Rate Rises to 7.50%, First Increase Since October

GOVERNMENT ACCOUNTS

In what was seen by analysts as a cautious decision, the Central Bank’s monetary policy committee (Copom) on April 17 raised the Selic rate by a quarter point to 7.50% a year. The rate had been unchanged at 7.25% since October of last year when Copom concluded a string of ten meetings where the base interest rate was lowered. The last rate hike, prior to Wednesday, occurred on July 20, 2011 when the Selic rose to 12.5%. The rate hike decision was divided with six Central Bank directors voting in favor and two opposed. It comes at a complicated moment for both the government and the monetary authority. With annual inflation surpassing the year’s target in March, pressure has been growing for the Central Bank to respond by raising interest rates. President Dilma Rousseff, however, spoke out against measures that slow the economy, seen as a presidential veto of a rate increase. This created concern that the Central Bank was losing its autonomy. On Wednesday, Rousseff appeared to concede that a rate hike was imminent but stressed that it should be small. The fact that Copom opted for only a quarter-point increase again raised concerns that it was sacrificing its credibility for the political interests of the presidential palace. In a note that accompanied its decision, Copom said: “The committee evaluates that the elevated level of inflation and the disparity of price increases have contributed to make inflation resistant and provoke a monetary policy response. On the other hand, Copom ponders that internal and principally external uncertainties surround the prospects for inflation and recommend that monetary policy be administered with caution.” Comments on the rate increase were sharply divided with some economists arguing that it was not enough to influence inflation and others claiming that no rate hike is necessary at the present moment. The National Confederation of Industry (CNI) lamented the decision continues on page 3

More Flexibility Announced for Fiscal Goals The government admitted that it will have to alter its fiscal targets for the third year….............3 INFRASTRUCTURE Government Makes Concessions on Reform Government officials negotiated changes in the port reform decree…..........................................3 POLITICS Bill Restricts Rights of New Political Parties The lower house of Congress approved a bill which limiting the rights of new parties…........4 ENERGY April Rainfall 35% above Average Rainfall in April has exceeded expectations, improving the water level of reservoirs….........5 THE ECONOMY Inflation of 0.51% in April IBGE announced that the IPCA-15 registered an April inflation rate of 0.51%.........................6 EVENTS Boston Bombings Alert Brazil Officials Government officials said they were closely following the investigation into the explosions at the Boston Marathon….....................................7 EXECUTIVE SUMMARY…..........................2 GOVERNMENT…..........................................5 BANKS….........................................................8 COMPANY NEWS…......................................8 OTHER DEVELOPMENTS….......................9 BRAZIL IN NUMBERS…............................10


EXECUTIVE SUMMARY FOR APRIL 15-19, 2013 Monetary Policy The Central Bank’s monetary policy committee (Copom) raised the Selic rate by a quarter point to 7.50% a year to combat inflation. The increase, however, was seen by many economists as too little to have any impact on inflation. The Selic had been unchanged at 7.25% since October of last year and the previous rate hike occurred on July 20, 2011 when the Selic rose to 12.5%. The National Confederation of Industry (CNI) lamented the decision which it said “is extremely prejudicial to industry” and will bring “large damage to productive activity.” The Financial Market The Bovespa index of leading shares fell 1.88% last week and is now down 4.3% for the month. The dollar closed the week at R$2.013, up 2.29%. Government Accounts The government admitted that it will have to change its fiscal targets for the third straight year. Officials said that they will alter the 2013 budget guidelines in order to eliminate the investments of state and local governments from the 3.1% of gross domestic product target for the primary budget surplus. This is expected to lower the actual surplus to below 2% of GDP. The government sent its 2014 budget guidelines to Congress. The guidelines set next year’s minimum salary at R$710, an increase of 6.12% from the current level of R$678. Infrastructure In response to pressure from business associations, the ports of Santos, Rio de Janeiro and Vitória were ordered to operate on a 24-hour a day schedule including weekends and holidays. In May, the 24-7 schedule will be extended to five other important ports including the vital grains port of Paranaguá. The government accepted several changes in the port reform decree, MP 595, in order to increase its chances for approval by Congress. Civil Aviation Minister Wellington Moreira Franco said the government will expand services and step up security at the country’s airports for the June Confederations Cup games. Politics The lower house of Congress approved a bill which limits the access of newly created parties to resources from the political party fund and to free air time for commercials. Opposition leaders charged that the bill was an attempt to hurt the chances of opposition presidential candidates in 2014. The legislation now must be approved by the Senate. Labor Brazil in March created 112,450 formal jobs, an increase of 0.6% over March 2012. In the first quarter, however, job creation declined 19.7% versus the same period last year with a net gain of 306,068 jobs. São Paulo industry created 13,000 new jobs in March, an increase of 0.5% from February. In the first quarter, the Fiesp job indicator expanded 1.29% with a net gain of 33,500 jobs. Telecommunications Mobile phone operator Claro launched its fourth generation service in Brazil. The other mobile phone operators have until the end of April to initiate their service. Mensalão The first part of the final summary of the mensalão corruption trial was published on Friday in the official registry. The publication will be completed on Monday after which the 25 convicted defendants will have ten days to file appeals.

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which it said “is extremely prejudicial to industry” and will bring “large damage to productive activity.” The announcement came after the financial market had closed but on the following day interest futures contracts registered sharp declines. The market had been expecting a half-point rate cut. In response, contracts maturing in July fell from 7.625% to 7.390% and contracts maturing in January 2014 dropped from 8.230% to 7.850%. These were the largest declines for interest futures since December 2008 at the height of the global financial crisis.

Stocks Down. Dollar Back to R$2.01

In a week marked by signs of a slowdown in the expansion of the Chinese economy and a terrorist bombing in Boston, the stock market again registered declines. The Bovespa index of leading shares fell 1.88% and is now down 4.3% for the month. Wednesday’s announcement of a lower than expected Selic rate increase sparked a strengthening of the dollar which climbed back over the R$2 mark. The US currency closed the week at R$2.013, up 2.29%.

Government Accounts

More Flexibility Announced for Fiscal Goals

The government admitted on April 15 that it will have to alter its fiscal targets, for the third straight year. With spending outpacing revenues, flexibility has become the mainstay of government fiscal policy. Last year, the government eliminated spending on its accelerated growth program from its calculations and also used resources from its sovereign fund and state company dividends in order to guarantee its primary budget surplus. For this year, the surplus target was initially set at 3.1% of gross domestic product but it is already clear this cannot be met. As their response to this, officials said Monday that they will alter the 2013 budget guidelines in order to eliminate the investments of state and local governments from the 3.1% target. This is expected to lower the actual surplus to below 2% of GDP.

Government Projects Minimum Wage of R$710 in 2014

The government on April 15 sent its 2014 budget guidelines to Congress. The guidelines set next year’s minimum salary at R$710, an increase of 6.12% from the current level of R$678. The final number, however, will depend on this year’s inflation result. The guidelines set the government’s primary budget surplus target at 3.1% of gross domestic product with the federal government responsible for 2.15%. The economy is projected to expand by 4.5% in 2014 with inflation at 4.5%. The Selic rate is projected to remain at its current level of 7.25% a year.

Bill Gives States and Cities Better Terms To Pay Social Security Debts

The Senate on April 18 approved a bill that eases the payments of social security debts of state and local governments. Under the bill, already approved by the lower house, states and cities will be able to pay off their debts existing as of Feb. 28, 2013 in 240 installments or at a rate of 1% of their net revenues from the preceding year, whichever is less. Fines will be eliminated and 50% of the interest charges will also be written off. It is estimated that nearly 80% of Brazil’s cities have social security debts.

Infrastructure

Government Makes Concessions on Port Reform

Government officials met with Senator Eduardo Braga (PMDB-AM) on April 16 to negotiate changes in the

BRASILINFORM, April 24, 2013


government’s port reform decree, MP 595. Opposition from current holders of port terminal concessions plus some business associations has placed the reform in jeopardy. In order to improve the decree’s chances of congressional approval, the government agreed to several concessions in a new draft. Holders of expired terminal concessions in public ports that were signed before 1993 will be allowed to renew their concessions for at least five years. Concession contracts signed after 1993 can be renewed before their expiration dates without a new auction provided that the holders agree to new investments. A new category of industrial terminals will be created for specific industries. Government officials said the changes would not damage the overall reform whose goal is to increase competition, expand investments, raise port capacity and lower operating costs. The government has said the reform should generate investments of R$54 billion (US$27 billion) through 2017, including R$31 billion (US$15.5 billion) by the private sector through 2015.

Ports To Operate 24 Hours a Day, Seven Days a Week

In response to pressure from business associations, the government’s secretariat for ports announced that the ports of Santos, Rio de Janeiro and Vitória will now operate on a 24-hour a day schedule including weekends and holidays. At present, ships arriving on Friday evening have to wait until Monday to go through unloading operations because federal inspectors do not work on weekends or past 6 p.m. on weekdays. In May the 24-7 schedule will be extended to five other important ports including the vital grains port of Paranaguá. The new policy is expected to increase the capacity of the ports to handle containers and other cargo by at least 25%. The Rio de Janeiro Federation of Industries (Firjan) has been leading the movement to expand the working hours of the federal agencies that inspect cargoes, including the Federal Police, the Agriculture Ministry, the Navy and the tax department.

Higher Returns To Be Set for Concessions

Officials said on April 15 that the government has decided to raise the projected return for highway and railroad concessions that will be sold to the private sector. When the ambitious program was first announced last August, the returns were projected at between 6% and 6.5% but this was later lowered to 5.5%. Companies, however, protested and two auctions set for January had to be cancelled because of the lack of interest among potential bidders. In the second week of April, the executives of construction firms met with cabinet head Gleisi Hoffmann to repeat their concerns with the low returns. In statements Monday, officials said the returns for the concessions will be raised to between 7% and 8% which will permit holders of highway concessions to charge higher tolls.

Politics

Bill Restricts Rights of Newly Formed Political Parties

The lower house of Congress on April 17 approved a bill which limits the access of newly created parties to resources from the political party fund and to free air time for commercials. According to the bill these restrictions will apply to parties created between elections and whose members are drawn from other parties. The new parties will be restricted to the minimum levels for party funds and free air time. This will only be lifted if they are able to elect members of their new party to Congress. The bill now goes to the Senate. Opposition leaders charged that the bill was an attempt to hurt the chances of opposition presidential candidates in 2014. Prior to the vote, the PPS and PMN parties announced they were merging to form a new party called the

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Democratic Mobilization (MD). The MD will be an opposition party and begins with 13 congressmen.

Mensalão Summary Begins To Be Released

The first part of the final summary of the mensalão corruption trial was published by the Supreme Court on Friday in the official registry. The publication will be completed on Monday after which the 25 convicted defendants will have ten days to file appeals. The court on April 17 voted to double the time given the defendants to file appeals. Chief Justice Joaquim Barbosa had defended a five-day limit but was overruled by the court’s majority which voted to raise the time period to ten days.

Government

TCU To Audit Low Income Housing Program

The Senate on April 18 approved a request for the federal accountability agency (TCU) to audit the government’s My House My Home program of housing for low income families. A series of articles last week by the Globo newspaper pointed out irregularities and apparent frauds in the program involving at least one company. At the start of the week, the Ministry of Cities and the government’s controller general’s office (CGU) decided to create a special commission to investigate the accusations.

Rousseff Signs First Highway Concession

President Dilma Rousseff on April 17 signed the first highway privatization of her government. A concession for the BR-101 highway which runs from the state of Espírito Santo to Bahia, was awarded at a public auction in January of last year to the Eco101 consortium. The losing group, however, challenged the outcome and an injunction was granted suspending the privatization. That injunction was finally overturned on Tuesday by the Superior Court of Justice, permitting Rousseff to sign the contract. The government last year announced a major program to sell concessions for highways, railroads, seaports and airports to the private sector but thus far nothing has happened.

Start-Up Program Launched

The government on April 15 launched its Start-Up Brasil program whose objective is to stimulate the creation of high tech firms. The Ministry of Science, Technology and Innovation published the requirements for companies to qualify for the program which will provide R$200 million (US$100 million) in financial assistance to the first 50 firms selected. The start-up companies must be small and be at least three years old. Out of the total selected, 25% can be foreign owned. The chosen companies must present innovative ideas and have the technological know how to implement their projects.

Energy

April Rainfall 35% above Average

Rainfall thus far in April has exceeded expectations, improving the water level of the nation’s hydroelectric reservoirs. In the first two weeks of the month, rainfall was 35% above the historical average for the period. With this, reservoir water levels have climbed to 60% of capacity compared with 30% at the end of last year.

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The improving situation has led to a reduction in the price of electricity negotiated on the spot market. The price for six-month contracts has fallen by 7%. Despite the increased rainfall, however, sector analysts believe the government will have to maintain Brazil’s thermo-electric plants in operation to guarantee supply.

64 Firms Qualified for Oil Auction

The National Petroleum Agency (ANP) announced on April 15 that 64 companies have been approved to participate in the May 14-15 auction of oil exploration concessions. Among the newcomers are the Chinese firms Sinochem and CNOOC, Malaysia’s Petronas, Britain’s Chariot Oil & Gas and France’s GDF Suez. BP Energy and Cisco Oil dropped out of the auction.

Angra 1 Nuclear Plant Shut Down

The Angra 1 nuclear power plant had to be shut down on April 18, removing its 640 megawatts from the national grid. Eletronuclear, the plant’s operator, said the problem was an electrical failure in the plant’s control system. The company said there was no leakage of radioactivity and the incident presented no risk to residents of the city of Angra dos Reis in the state of Rio de Janeiro where the plant is located. There was no estimate as to when the plant will resume operations but officials said the electricity produced by thermo-electric plants now in operation guaranteed there would be no power shortages.

The Economy

Inflation of 0.51% in April

IBGE announced that the IPCA-15, the mid-month preview of the Broad Consumer Price Index (IPCA), registered an April inflation rate of 0.51%, up from 0.49% in March. This raised the 12-month rate from 6.43% to 6.51%. Food prices in April rose 1%, down from 1.4% in March. The price of tomatoes, however, continued to soar, climbing 16.62%.

Formal Job Creation up 0.6% in March

Brazil in March created 112,450 formal jobs with signed working papers, an increase of 0.6% over March 2012. In the first quarter, however, job creation declined 19.7% versus the same period last year with a net gain of 306,068 jobs, according to the Labor Ministry. The services sector led job creation in March with 61,349 positions, followed by industry, 25,790, construction, 19,709 and commerce, 3,160.

IMF Lowers Brazil Growth Outlook to 3% for 2013

In its quarterly report on the global economy, the International Monetary Fund lowered its projection for Brazil’s economic growth this year from 3.5% to 3%. For 2014, the country’s gross domestic product is expected to expand by 4%. The IMF projected inflation at 6.1% in 2013, falling to 4.7% in 2014. The report stated that Brazil’s economy this year will benefit from last year’s reduction in interest rates and the economic stimulus measures adopted by the government.

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13,000 Jobs Added to São Paulo Industry

São Paulo industry created 13,000 new jobs in March, an increase of 0.5% from February, according to the state’s federation of industries (Fiesp). Versus March of last year, however, the state’s industrial workforce declined 0.93%, representing the loss of 24,500 jobs. In the first quarter, the Fiesp job indicator expanded 1.29% with a net gain of 33,500 jobs.

Trade Balance Improving in April

Brazil’s trade balance continued to improve in the second week of April with a surplus of US$627 million on exports of US$4.744 billion and imports of US$4.117 billion. This raised the month’s surplus to US$938 million and reduced the year’s deficit to US$4.218 billion. In the first half of April exports declined 2.8% on a daily average versus April 2012 but imports fell 8.3%.

Consumers Having Problems Paying Debts

With inflation on the rise, the level of consumer defaults increased in March, according to Serasa Experian. The company’s consumer delinquency indicator increased 3.6% from February and 8.12% versus March 2012. The largest increase came in the category of bad checks which jumped by 26.4% from February. The default rate on non-bank debts, including credit cards, expanded by 2.5%. Serasa analysts said it was too early to draw firm conclusions from March’s numbers but they expressed concern that the situation could become worse if interest rates start to increase.

Events

Boston Bombings Alert Brazil Officials

Government officials said April 16 they were closely following the investigation into the explosions at the Boston Marathon as they consider whether to change security measures for next year’s World Cup and the 2016 Olympics. But a top official with FIFA, soccer’s world governing body, said his organization was already planning tougher security for the 2014 World Cup in Brazil in light of the Boston attack. FIFA Secretary-General Jerome Valcke said during a visit to Haiti on Tuesday that the measures would include secret service agents, police officers, military and Interpol. Valcke also said a perimeter adding a second layer of security protection would be set up around Brazil’s stadiums, with inspections of everyone passing through. As during the last World Cup in South Africa, a satellite will provide surveillance over Brazil, he said. “As you can imagine with what happened in Boston, (security) will be even ... stronger,” Valcke said at a news conference in the Haitian capital of Port-au-Prince. “We will push the limit to make sure that we have the security, from the beach, to the airport, to the stadium.” “We are confident there will be measures which will guarantee the security of the events,” Foreign Minister Antonio Patriota said, adding that authorities were awaiting the conclusions of the investigation into the two Boston blasts. Brazil has already purchased four Israeli-made drones to help during the Confederations Cup in June. Under current plans, armed military police officers would be responsible securing a perimeter around soccer stadiums, while FIFA would handle safety inside the venues, largely using private security guards equipped with nonlethal weapons.

Government Unveils Airport Plan for Confederations Cup

The government will expand services and step up security at the country’s airports that will see a surge in

BRASILINFORM, April 24, 2013


traffic in June when an estimated 335,000 soccer fans travel to attend Confederations Cup games, aviation authorities said on April 18. Civil Aviation Minister Wellington Moreira Franco announced a plan to increase by 77% the number of police, customs and immigration officials and airport workers to avoid delays at airports in the six cities hosting the games, plus São Paulo’s Guarulhos airport, the country’s largest connections hub. The June 15-30 tournament is a dress-rehearsal for the 32-nation World Cup next year, which is expected to draw more than half a million soccer fans to Brazil. The airport plan includes every aspect of air travel, from increasing the number of airplane parking slots to setting air traffic control rules to keep flights flowing on time. It even foresees more toilets at airports, Moreira Franco said. “This is a warm-up for the World Cup,” he said at a news conference.

Banks

Record First Quarter Lending for BNDES

The National Development Bank (BNDES) released R$37 billion (US$18.5 billion) in new loans in the first quarter, an increase of 52% over the same period in 2012 and a record for the quarter. BNDES president Luciano Coutino said the result was influenced by a strong increase in loans for the purchase of machinery and equipment, an indication that companies are investing more this year. Loans to industry totaled R$13.5 billion (US$6.7 billion) or 36% of the quarter’s total, an increase of 109%. Infrastructure loans expanded 25% over the same period last year to R$9.2 billion (US$4.6 billion).

Online Banking Now Leads Banking Transactions

The National Federation of Banks (Febraban) announced that last year for the first time more Brazilians used the internet to handle their banking needs than those who went to their bank branches or used ATMs. For the year, 42% of all banking transactions were conducted online versus 41% at bank branches and through ATMs. The remainder was composed of debit card transactions through stores. According to the consultancy responsible for the survey, it is expected that by 2017, 60% of all banking transactions will be online. Because of this surge in Internet banking, the nation’s banks have increased their investments in technology which last year totaled R$20.1 billion (US$10 billion).

Company News

Claro Launches 4G Service in Eleven Cities

Mobile phone operator Claro on April 16 launched its fourth generation service in Brazil. The 4G service, the first of its kind in the country, is available in 11 cities including the six cities that will host games in the Confederations Cup soccer tournament in June. The 4G technology offers accelerated Internet access. In June of last year, the country held its first auction of wireless frequencies for 4G mobile phone service. Under the tender rules, all of Brazil’s cities with populations of over 500,000 must have 4G service by May 31, 2014. For cities of 200,000 to 500,000, service must be available by the end of 2015. All of the nation’s cities with populations of 30,000 or more must be offering at least 3G service by the end of 2016 and 4G by the end of 2017. João Rezende, president of the National Telecommunications Agency (Anatel), predicted that 4 million cell phones with 4G capacity would be sold in Brazil this year. The other mobile phone operators have until the end of April to initiate their service.

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Cade Approves Pão de Açucar Acquisitions

The Justice Ministry’s anti-trust organ Cade on April 17 approved the acquisition of retail chains Ponto Frio and Casas Bahia by Brazil’s leading retail group, Pão de Açucar. The purchases led to the creation of a new company called Viavarejo. Although approving the purchases, Cade also stated that Viavarejo must sell 74 of its stores. Cade also approved 12 acquisitions made in recent years by Brazil’s giant meat processing company JBS.

Other Developments

Tombini Says Foreign Borrowing by Companies Is Positive

Central Bank president Alexandre Tombini on April 18 told a Washington seminar on capital flows sponsored by the International Monetary Fund that the increased dollar indebtedness of Brazilian firms is positive. The IMF has warned Brazil and other emerging nations to be cautious with the growing indebtedness of their companies in foreign currencies. According to the fund, the situation could become dangerous in a case of capital flight or rising interest rates. But Tombini dismissed these concerns and stressed the positive impact of the abundance of foreign investment funds at low interest rates which he said has helped finance Brazil’s economy and aided companies in restructuring their debts. Between 2007 and 2012, the percentage of company debts in foreign currencies rose from 7.5% of gross domestic product to 12%.

Barbosa Among Time Magazine’s Top 100

Supreme Court Chief Justice Joaquim Barbosa was selected as one of the world’s 100 most influential persons by Time magazine. The only other Brazilian to make the annual list was top chef Alex Atala. President Dilma Rousseff was on the list in 2012 but this year was not included. Also left off this year’s list were business tycoon Eike Batista and Petrobras president Graça Foster.

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BRAZIL IN NUMBERS

TRADE

Exports (in US$ million) Balance (in US$ million) Imports (in US$ million) 12 Months

Period

Month

1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 March 19,323

Year (cumulative)

Month

Year (cumulative)

20,313 21,900 27,005 25,639 22,393 26,213 33,740 34,421 31,414 31,620 36,207 38,701 43,590 46,493 47,738 52,986 51,120 48,011 55,086 58,223 60,298 73,084 96,470 118,309 137,471 160,649 197,942 152,995 201,916 256,041 242,580 50,839 19,159

Month

Year (cumulative)

19,396 15,428 13,937 12,189 14,045 15,061 14,680 18,293 20,424 21,041 20,542 25,652 33,167 49,656 53,281 61,358 57,550 49,210 55,777 55,580 47,188 48,253 62,780 73,545 91,394 120,610 173,207 127,647 181,638 226,251 223,142 55,989 164

817 6,472 13,068 13,450 8,348 11,152 19,060 16,128 10,750 10,579 15,665 13,049 10,423 -3,157 -5,544 -8,372 -6,430 -1,199 -691 2,643 13,110 24,831 33,690 44,764 46,077 40,039 24,735 25,348 20,278 29,790 19,438 -5,150

(cumulative)

11,583

LABOR

Unemployment Brazil (IBGE, %) Unemployment Greater S達o Paulo (Dieese, %) Sao Paulo Industrial Employment (Fiesp, monthly % variation) Minimum Wage

October

November

December

January

February

5.3

4.9

4.6

5.4

5.6

10.9

10.3

10.0

10.0

10.3

-0.14 R$622

-0.33 R$622

-2.52 R$622

0.12 R$678

0.38 R$678

INDUSTRY

Variation in %

Year To Date

Industrial production (IBGE) Fiesp Industrial Activity Auto production (1,000 vehicles)

Period

February February March

Result

- - 319.1

Month*

-2.5 -1.5 39.2

1.1 2.8 12.1

March

April

0.50 R$678

R$678

Year-on-Year**

-3.2 -0.8 3.4

*compared with previous month **compared with same month last year

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EXCHANGE RATES

Period

2011 2012 2013

Commercial Dollar

Variation Month (%)

Black Market Dollar

(end of month in R$)

Variation Month (%)

Spread Commercial/Black

(end of month in R$)

(end of month, in %)

April May June July August September October November December

1.5733 1.5799 1.5611 1.5563 1.5872 1.8544 1.6885 1.8109 1.8758

-3.40 0.42 -1.19 -0.31 1.99 16.83 -8.95 7.25 3.58

1.690 1.700 1.660 1.650 1.700 2.000 1.800 1.930 2.030

-3.43 0.59 -2.35 -0.60 3.05 17.65 -10.00 7.22 5.18

7.4 7.6 6.3 6.0 7.1 7.8 6.6 6.5 8.2

January February March April May June July August September October November December

1.7391 1.7092 1.8221 1.8918 2.0223 2.0213 2.0499 2.0372 2.0306 2.0313 2.1074 2.0435

-7.29 -1.72 6.61 3.83 6.90 -0.05 1.41 -0.62 -0.32 0.03 3.75 -3.03

1.860 1.830 1.950 2.020 2.170 2.160 2.180 2.160 2.190 2.170 2.260 2.180

-8.37 -1.61 6.56 3.59 7.43 -0.46 0.93 -0.92 1.39 -0.91 4.15 -3.54

6.9 7.0 7.0 6.7 7.3 6.8 6.3 6.0 7.8 6.8 7.2 6.6

January February March April* * as of April 19

1.9883 1.9754 2.0138 2.0089

-2.70 -0.65 1.94 -0.24

2.140 2.110 2.150 2.140

-1.83 -1.40 1.90 -0.47

7.6 6.8 6.7 6.5

MONETARY AGGREGATES

Period February Money Supply (M1)* February Monetary Base* M4* February February Private Securities* Savings Accounts* February * as of end of month

Quantity

R$ million

286,675 205,023 4,114,728 925,009 504,718

US$ million

Variation in %

Month

145,122 103,788 2,082,984 468,264 255,501

0.0 -5.3 -0.3 -0.8 0.6

Year to Date

-11.6 -12.1 0.5 -2.2 1.2

INVESTMENTS

Options

Black Market Dollar Gold S達o Paulo Stock Exchange 31-day CDs (fixed rate), annual yield CDI Savings Deposits (maturing May 2)

BRASILINFORM, April 24, 2013

Closing (April 19)

Variation Week

Variation Month (April)

R$2.14 R$93.10 53,928 7.21% 7.10%/year 0.50%/month

1.42% -2.51% -1.88% - - -

-0.47% -10.05% -4.30% -


RESERVES Period Ready Reserves (in US$

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 February

million at end of period)

7,268 8,751 8,552 19,008 25,900 36,471 50,449 59,039 51,359 43,600 35,554 32,949 35,844 37,823 49,296 52,935 53,799 85,839 180,334 193,783 239,054 288,575 352,012 373,147 373,741

INTEREST RATES

SELIC ACC, 180 days One-day Loans (Hot Money) TJLP Export Notes Credit Cards Special Checks

Period

Rate

April 19 April 19 April 19 April 19 April 19 April 19 April 19

7.50%/year 1.70%/year plus exchange 3.06%/month 5.0%/year 5.37%/yr plus exchange correction 7-11%/month 138.5%/year

INFLATION Index

Period

Month

Year

12 Months

IPCA IGP IGP-M

March March March

0.47 0.31 0.21

1.94 0.81 0.84

6.59 7.97 8.06

FIPE

March

-0.17

1.20

5.57

RETAIL SALES (nationwide--IBGE)

Variation in %

Period

Total Sales Durable Goods Semidurables Supermarkets, Food Vehicles

February February February February February

* in comparison with previous month

Month*

-0.4 -0.2 -1.1 -1.0 -1.7

Year to Date

2.9 2.7 2.3 0.6 5.7

Year-on-Year

-0.2 -1.0 -1.0 -2.1 3.2

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BRASILINFORM, April 24, 2013


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