This article for the first time uses Brazilian trade data to draw conclusions about the invoice c... more This article for the first time uses Brazilian trade data to draw conclusions about the invoice currency choice—both in general and as it pertains to the Brazilian real (BRL). We find that the Brazil-Argentina policy of providing payment orders associated to an exchange transaction between their currencies has had a significant impact on the currency chosen for invoicing, establishing a link between the availability of financial instruments and the invoice currency choice. Moreover, the evidence does not confirm some previous international results. We identify that in Brazil there is no coincidence regarding the use of BRL for invoicing and its use for making payments. Yet we find that the main exports denominated in BRL are homogenous goods—sugar and tobacco—suggesting that some bargaining power might remain even if goods are traded in international markets. From the BRL-specific perspective, we categorically move away from the idea that the BRL is not used in Brazilian international trade. Although it is used at a limited absolute volume, an exceptional ninefold growth between 2007 and 2011 is observed. New intriguing questions about Brazilian currency usage can therefore be proposed.
The article describes the invoice currency choice in the Brazilian foreign trade, focusing on the... more The article describes the invoice currency choice in the Brazilian foreign trade, focusing on the use of the Brazilian real (BRL). The Ministry of Foreign Trade (MDIC) database is used for the first time for this purpose. Even with the US dollar being far more used in Brazil than in other countries, the BRL use for denominating trade has had exceptional growth. We categorically move away from the idea that the BRL is not used in Brazilian international trade. Brazilian imports show a strong tendency toward being more invoiced in noninternational currencies than exports. Brazilian trade evidence does not confirm some previous international findings. Although they are homogenous products, sugar and tobacco are the two main exports denominated in BRL. BRL use as invoice currency and as payment currency does not match.
Este artigo descreve a política conjunta de Brasil e Argentina relativa ao uso de moedas locais n... more Este artigo descreve a política conjunta de Brasil e Argentina relativa ao uso de moedas locais no comércio bilateral. A estrutura do Sistema de Pagamentos em Moeda Local (SML) é examinada como um instrumento de redução de custos do comércio pela oferta de um novo mecanismo de integração financeira e as suas consequências são analisadas de acordo com as tradicionais questões do comércio internacional. A lógica do SML é abordada de diferentes pontos de vista. Adicionalmente, são descritos e analisados os dados disponíveis para o sistema de pagamento, mostrando seu uso ser mais comum para as exportações brasileiras que para as argentinas.
The paper describes the joint policy of Brazil and Argentina regarding currency use in bilateral ... more The paper describes the joint policy of Brazil and Argentina regarding currency use in bilateral trade. The Local Currency Payment System (SML) framework is investigated as an instrument of reducing trade costs by providing new financial integration mechanisms and its implications according to usual trade issues debate. We cut across different issues related to the SML rationale. Additionally, we describe and analyze the available data for the system, showing that SML use is more common to Brazilian exports than to Argentinean ones.
O trabalho objetiva analisar a adequação dos gastos orçamentários brasileiros na função defesa na... more O trabalho objetiva analisar a adequação dos gastos orçamentários brasileiros na função defesa nacional às necessidades nacionais com o provimento deste bem público. Constata-se a inexistência de indicadores que permitam mensurar a eficácia dos gastos em termos da Política de Defesa Nacional. Sendo assim, executam-se avaliações comparativas das contas de defesa. Observa-se que os gastos nacionais com defesa seguem uma tendência mundial de redução de sua participação no total das contas nacionais, não se constituindo, portanto, um descaso orçamentário com a área, embora percentualmente em relação ao total, pudesse ser obtida essa impressão. Observa-se ainda a existência de exemplos que poderiam indicar que a melhor gestão desta área em termos de eficiência poderia permitir maior efetividade das ações relacionadas.
This article for the first time uses Brazilian trade data to draw conclusions about the invoice c... more This article for the first time uses Brazilian trade data to draw conclusions about the invoice currency choice—both in general and as it pertains to the Brazilian real (BRL). We find that the Brazil-Argentina policy of providing payment orders associated to an exchange transaction between their currencies has had a significant impact on the currency chosen for invoicing, establishing a link between the availability of financial instruments and the invoice currency choice. Moreover, the evidence does not confirm some previous international results. We identify that in Brazil there is no coincidence regarding the use of BRL for invoicing and its use for making payments. Yet we find that the main exports denominated in BRL are homogenous goods—sugar and tobacco—suggesting that some bargaining power might remain even if goods are traded in international markets. From the BRL-specific perspective, we categorically move away from the idea that the BRL is not used in Brazilian international trade. Although it is used at a limited absolute volume, an exceptional ninefold growth between 2007 and 2011 is observed. New intriguing questions about Brazilian currency usage can therefore be proposed.
The article describes the invoice currency choice in the Brazilian foreign trade, focusing on the... more The article describes the invoice currency choice in the Brazilian foreign trade, focusing on the use of the Brazilian real (BRL). The Ministry of Foreign Trade (MDIC) database is used for the first time for this purpose. Even with the US dollar being far more used in Brazil than in other countries, the BRL use for denominating trade has had exceptional growth. We categorically move away from the idea that the BRL is not used in Brazilian international trade. Brazilian imports show a strong tendency toward being more invoiced in noninternational currencies than exports. Brazilian trade evidence does not confirm some previous international findings. Although they are homogenous products, sugar and tobacco are the two main exports denominated in BRL. BRL use as invoice currency and as payment currency does not match.
Este artigo descreve a política conjunta de Brasil e Argentina relativa ao uso de moedas locais n... more Este artigo descreve a política conjunta de Brasil e Argentina relativa ao uso de moedas locais no comércio bilateral. A estrutura do Sistema de Pagamentos em Moeda Local (SML) é examinada como um instrumento de redução de custos do comércio pela oferta de um novo mecanismo de integração financeira e as suas consequências são analisadas de acordo com as tradicionais questões do comércio internacional. A lógica do SML é abordada de diferentes pontos de vista. Adicionalmente, são descritos e analisados os dados disponíveis para o sistema de pagamento, mostrando seu uso ser mais comum para as exportações brasileiras que para as argentinas.
The paper describes the joint policy of Brazil and Argentina regarding currency use in bilateral ... more The paper describes the joint policy of Brazil and Argentina regarding currency use in bilateral trade. The Local Currency Payment System (SML) framework is investigated as an instrument of reducing trade costs by providing new financial integration mechanisms and its implications according to usual trade issues debate. We cut across different issues related to the SML rationale. Additionally, we describe and analyze the available data for the system, showing that SML use is more common to Brazilian exports than to Argentinean ones.
O trabalho objetiva analisar a adequação dos gastos orçamentários brasileiros na função defesa na... more O trabalho objetiva analisar a adequação dos gastos orçamentários brasileiros na função defesa nacional às necessidades nacionais com o provimento deste bem público. Constata-se a inexistência de indicadores que permitam mensurar a eficácia dos gastos em termos da Política de Defesa Nacional. Sendo assim, executam-se avaliações comparativas das contas de defesa. Observa-se que os gastos nacionais com defesa seguem uma tendência mundial de redução de sua participação no total das contas nacionais, não se constituindo, portanto, um descaso orçamentário com a área, embora percentualmente em relação ao total, pudesse ser obtida essa impressão. Observa-se ainda a existência de exemplos que poderiam indicar que a melhor gestão desta área em termos de eficiência poderia permitir maior efetividade das ações relacionadas.
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