What is the reason for the “fever” of Brazilians who send money abroad?

One of the main drivers for sending international remittances by Brazilians is investment. Data from Travelex Confidence, an exchange company, indicates that the most frequent transactions, i.e. 34.8% of cases, are characterized by sending money from one person to oneself, in an account abroad. The information refers to the first quarter of this year.

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In practice, the procedure is frequent in cases of investing abroad or even carrying out operations from international accounts in his name, whether he is an individual or a legal entity of the type Navy or investment. In these cases, 47.8% of the money is for the United States.

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Perhaps this practice can be explained by the fact that of the 4 million Brazilians living abroad, almost half live in the United States. Therefore, another aspect to consider is that in addition to investments, there are also transactions made by citizens who moved abroad and whose costs were covered by their own source of income in Brazil. This is the case for retirees, for example.

Another common method of transfer is “donations or transfers without payment”. In other words, they account for 33.4% of transactions and are usually made for the financial maintenance of residents abroad. This is the case for exchange students. In short, in these cases the United States remains the main destination, followed by Portugal and Canada. These countries are known for their concentration of Brazilian immigrants.

Finally, travel also appears in the ranking of motives for sending money abroad.

See other reasons for transfers abroad (Q1 2023):

• Transfer between accounts of the same natural or legal person: 34.8%
• Donations or transfers without charge: 33.4%
• Financial markets, capital markets, stocks and financing: 16.9%
• Buying or selling a service: 9.1%
• International flight: 2.6%