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Brazil's external sector: current account, FDI, reserves and the trade agreements behind them

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Last verified: 2026-10-27 · Status: Changing

Brazil runs a goods trade surplus and a services and income deficit: in the 12 months to September 2026 the current account deficit was US$60.0 billion (2.33 percent of GDP), more than covered by US$88.3 billion of net direct investment inflows (3.43 percent of GDP). The Central Bank holds the official reserves, US$362.8 billion at end September 2026, and gains on them are kept in a reserve rather than paid to the Treasury. Mercosur is the base of trade policy, and Mercosur agreements with the European Union (applied from 1 May 2026), Singapore (1 August 2026) and EFTA (1 October 2026) are now in force for Brazil; every foreign owned company also feeds the statistics through Central Bank FDI declarations.

Balance of payments figures are published by the Banco Central do Brasil in US dollars and are shown as published. Local currency examples use the PTAX selling rate of R$5.3346 per US dollar for 27 October 2026 (R$5.0377 on 23 October and R$5.5007 on 26 October 2026), for orientation only.

Key facts

Current account balance, 12 months	-2.33 % of GDPBanco Central do Brasil external sector press release of 26 October 2026, as of 2026-09-30 · in force
Current account balance, 12 months	-60.0 USD billionBanco Central do Brasil external sector press release of 26 October 2026, as of 2026-09-30 · in force
Net direct investment in the country (IDP), 12 months	88.3 USD billionBanco Central do Brasil external sector press release of 26 October 2026, as of 2026-09-30 · in force
Net direct investment in the country (IDP), 12 months	3.43 % of GDPBanco Central do Brasil external sector press release of 26 October 2026, as of 2026-09-30 · in force
International reserves	362.8 USD billionLei nº 4.595, art. 10, VIII, as of 2026-09-30 · in force
Current account balance, 2025 (revised)	-2.96 % of GDPBanco Central do Brasil external sector press release of 28 September 2026, as of 2025-12-31 · in force
Total assets triggering the annual FDI declaration	100000000 BRLResolução BCB nº 278, art. 39, as of 2022-12-31 · in force
Total assets triggering quarterly FDI declarations	300000000 BRLResolução BCB nº 278, art. 38, as of 2022-12-31 · in force
EU Mercosur interim trade agreement applied by Brazil	2026-05-01 dateDecreto nº 12.953, as of 2026-04-28 · in force

The rule

1. The Central Bank is the depositary of the official gold and foreign currency reserves and of Special Drawing Rights, and may carry out any operation with them allowed by the IMF Articles of Agreement. It also exercises control of foreign capital under the law.Lei nº 4.595 (financial system law), Art. 10, VII and VIII, 1964-12-31 official text · verified 2026-10-27

2. The part of the Central Bank's positive semiannual result that comes from the financial result of its FX reserves and domestic FX derivatives goes to a result reserve and is not paid to the Union; the rest of a positive result is paid to the Union by the 10th business day after balance sheet approval and used only to pay federal securities debt.Lei nº 13.820, Art. 2 and art. 3, 2019-05-02 official text · verified 2026-10-27

3. FX transactions may be carried out freely with no limit on amount, and the exchange rate is freely agreed. Foreign capital invested in Brazil receives the same legal treatment as national capital, and the Central Bank regulates and monitors the flows and stocks of foreign capital in Brazil and may require residents to provide the information needed to compile official macroeconomic statistics.Lei nº 14.286 (FX and foreign capital law), Art. 2, art. 9, art. 10, I, and art. 11, 2021-12-29 official text · verified 2026-10-27

4. Each Brazilian company with foreign direct investment must register the investor and receive an SCE-IED code before the first transfer or first periodic declaration. Periodic declarations feed the balance of payments and international investment position: quarterly if total assets reach R$300,000,000 (base dates 31 March, 30 June and 30 September), annual if assets reached R$100,000,000 at 31 December of the prior year, and five yearly (base years ending in 0 or 5) if assets reach R$100,000. There is no annual declaration in a five yearly year. Quarterly declarations are due within the following quarter; annual and five yearly declarations from 1 January to 31 March of the following year.
Cost to do it: No Central Bank fee to file; compliance cost is internal or adviser time.
Example: Assets of R$120,000,000 at 31 December 2026: annual declaration with base date 31 December 2026, due 1 January to 31 March 2027. / R$120,000,000 is about US$22.5 million; the R$300,000,000 quarterly threshold is about US$56.2 million.Resolução BCB nº 278, Art. 38, art. 39, art. 40 and art. 41, 2022-12-31 official text · verified 2026-10-27

5. The Treaty of Asunción created the Mercosur common market with Argentina, Paraguay and Uruguay, providing for free movement of goods, services and factors of production, a common external tariff and common trade policy towards third countries, and coordination of macroeconomic and sector policies.Decreto nº 350 (promulgates the Treaty of Asunción), Treaty art. 1, 1991-11-21 official text · verified 2026-10-27

6. Brazil applies the Uruguay Round Final Act, which created the World Trade Organization, from 1 January 1995.Decreto nº 1.355, Art. 1 and preamble, 1994-12-30 official text · verified 2026-10-27

7. The Interim Trade Agreement between the European Union and Mercosur, signed in Asunción on 17 January 2026 and approved by Congress through Decreto Legislativo nº 14 of 17 March 2026, is applied by Brazil from 1 May 2026.Decreto nº 12.953, Preamble and art. 1, 2026-04-28 official text · verified 2026-10-27 · changed: New: EU Mercosur interim trade agreement applied by Brazil from 1 May 2026.

8. The Mercosur Singapore Free Trade Agreement, signed on 7 December 2023, entered into force for Brazil on 1 August 2026, and the Mercosur EFTA Free Trade Agreement (Iceland, Liechtenstein, Norway and Switzerland), signed on 16 September 2025, entered into force for Brazil on 1 October 2026. Revisions and complementary arrangements that create burdens for national assets need Congress approval.Decreto nº 13.081; Decreto nº 13.126, Preamble, art. 1 and art. 2 of each decree, 2026-09-23 official text · verified 2026-10-27 · changed: New: Mercosur Singapore FTA in force for Brazil from 1 August 2026 (Decreto nº 13.081 of 27 July 2026) and Mercosur EFTA FTA from 1 October 2026 (Decreto nº 13.126 of 23 September 2026).

9. The President concludes treaties, conventions and international acts subject to Congress approval, and Congress decides definitively on treaties that create burdens or commitments for national assets.Constituição Federal de 1988, Art. 84, VIII; art. 49, I, 1988-10-05 official text · verified 2026-10-27

Item	September 2026	12 months to September 2026
Current account	US$5.1 billion deficit (US$8.8 billion deficit in September 2025)	US$60.0 billion deficit, 2.33% of GDP (US$78.4 billion, 3.57%, a year earlier)
Goods trade balance	US$6.9 billion surplus; exports US$34.6 billion (+12.9%), imports US$27.7 billion (minus 1.7%)	Not stated in the release
Services	US$5.2 billion deficit	Not stated in the release
Primary income	US$7.2 billion deficit, of which profits and dividends US$5.1 billion and interest US$2.2 billion	Not stated in the release
Direct investment in the country (IDP)	US$11.3 billion net inflow	US$88.3 billion, 3.43% of GDP
Portfolio investment in the domestic market	US$2.1 billion net outflow	US$5.1 billion net inflow
International reserves (stock)	US$362.8 billion, down US$9.8 billion in the month	Not applicable

Balance of payments, September 2026 and 12 months (Banco Central do Brasil, press release of 26 October 2026)

Item	2025
Current account	US$67.4 billion deficit, 2.96% of GDP
Services	US$52.2 billion deficit
Primary income	US$80.4 billion deficit
Direct investment profits paid abroad (expense)	US$72.6 billion, of which US$55.1 billion remitted and US$17.4 billion reinvested in Brazil
Direct investment liabilities (inflows)	US$85.0 billion
Corporate inversions added in the 2023 and 2025 revision	US$15.5 billion

2025 balance of payments after the September 2026 annual revision (Banco Central do Brasil, press release of 28 September 2026)

Agreement	Signed	In force or applied for Brazil	Decree
EU Mercosur Interim Trade Agreement	17 January 2026	Applied from 1 May 2026	Decreto nº 12.953 of 28 April 2026
Mercosur Singapore FTA	7 December 2023	1 August 2026	Decreto nº 13.081 of 27 July 2026
Mercosur EFTA FTA	16 September 2025	1 October 2026	Decreto nº 13.126 of 23 September 2026

Trade agreements in force for Brazil added in 2026 (Planalto decrees)

Worked example

Funding the gap. In the 12 months to September 2026 the US$60.0 billion current account deficit was smaller than the US$88.3 billion of net direct investment inflows, so FDI alone covered it about 1.5 times. In reais at the 27 October 2026 PTAX, US$88.3 billion is about R$471 billion.
Profits out. In 2025 foreign direct investors earned US$72.6 billion in Brazil, remitted US$55.1 billion and reinvested US$17.4 billion. US$1 billion of remitted dividends is about R$5.33 billion at the 27 October 2026 rate.
Reporting your subsidiary. A subsidiary with total assets of R$350,000,000 at 30 June 2026 files a quarterly declaration for that base date between 1 July and 30 September 2026 (Resolução BCB nº 278 arts. 38 and 41); because its assets also exceed R$100,000,000, it files the annual declaration for 31 December 2026 between 1 January and 31 March 2027.

Step by step

1. Register the foreign investor and the Brazilian company in SCE-IED before the first capital transfer (Resolução BCB nº 278).
2. Diary the periodic declarations by total assets: quarterly at R$300 million, annual at R$100 million, five yearly at R$100,000 (arts. 38 to 41).
3. Check whether your goods qualify for the new EU, Singapore or EFTA preferences, and obtain proof of origin; see the trade agreements page.
4. For Mercosur trade, including with Argentina, use the Mercosur rules and check the Argentine side in the Argentine guide; this guide covers only the Brazilian side.
5. Watch the monthly Central Bank external sector release (around the 25th) for flows, and the reserves data for the Central Bank's FX buffer.

Common traps

Reading the current account deficit as a funding risk on its own. Net FDI inflows of US$88.3 billion exceeded the US$60.0 billion deficit in the 12 months to September 2026.
Missing FDI declarations. The obligation depends on total assets, not on new transfers, so dormant subsidiaries with assets of R$100,000 or more must still file the five yearly declaration (Resolução BCB nº 278 art. 40).
Assuming all EU Mercosur provisions are final. Brazil applies the EU Mercosur agreement provisionally from 1 May 2026; its entry into force for Brazil in international law depends on mutual notifications (Decreto nº 12.953, preamble).
Treating reserves as Treasury money. Gains on FX reserves stay in a Central Bank result reserve and are not transferred to the Treasury (Lei nº 13.820 art. 3).
Using a single spot rate for annual planning. The PTAX moved from R$5.0377 on 23 October to R$5.5007 on 26 October 2026.

Sources

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