Invoice Currency in Brazil

Reiss, Daniel

Invoice Currency in Brazil

MPRA Paper from University Library of Munich, Germany

Abstract: 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.

Keywords: international trade; Brazilian real use; currency denomination; currency invoicing (search for similar items in EconPapers)
JEL-codes: D23 E42 E58 F13 F14 F20 F39 (search for similar items in EconPapers)
Date: 2014-07-22
New Economics Papers: this item is included in nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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https://mpra.ub.uni-muenchen.de/59412/1/MPRA_paper_59412.pdf original version (application/pdf)

Related works:
Working Paper: INVOICE CURRENCY IN BRAZIL (2016)
Working Paper: Invoice Currency: puzzling evidence and new questions from Brazil (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:59412

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