Brazilian Disillusionment Stimulates Explosion in Money Transfers to the United States

08/03/2017 - 11h37

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JOANA CUNHA

ÁLVARO FAGUNDES

FROM SÃO PAULO

A new immigration wave of Brazilians disillusioned with the political scenario in the country has contributed to the tripling of the amount of money sent from Brazil to the United States so far this year.

The amount of monetary resources sent by individuals in Brazil to individuals in the United States increased 227% in the first semester, to US$ 408 million, according to the Central Bank.

Part of the increase can be explained by a change in the composition of Brazilian migrants to the United States: with a more elitist profile, who rely on Brazilian economic activities to sustain their American livelihood.

The Central Bank can't identify precisely what these resources are used for, but confirms that they aren't related to loans, financing, or the purchase or sale of goods and services.

Businessman Fernando Mello, a partner at IMGroup, says that, when he realized how much demand there was, his company started providing assistance to Brazilian families emigrating to the United States.

According to Mello, today's emigrant has a different profile than that of the typical Brazilian that left for the United States in the 1980s.

If in the past Brazilians went abroad to make money to send back to families who remained here, today those resources are flowing in the opposite direction.

"Today, these are families with wealth and assets, couples in their 40s and beyond, in much less of an improvised situation."

Before leaving Brazil definitively, these couples usually send their teenage children to study abroad. And until the parents themselves move as well, their children are supported by these transfers.

Translated by LLOYD HARDER

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