Mercosul's real exports experience a notable 21.2% growth.

For Argentina and Paraguay, notable sales growth in the manufacturing industry stood out, with increases of 13.7% and 20.2%, respectively. Meanwhile, Uruguay's exports in Brazilian currency were driven by electricity sales.

In terms of destinations, the European Union ranked second for real exports, constituting 15.6% of the total. Simultaneously, it holds the top position for exports in euros, commanding a 61.5% share.

This information is sourced from the annual report on currencies declared in commercial operations between Brazil and other countries, published by the Foreign Trade Secretariat of the Ministry of Development, Industry, Commerce, and Services (Secex-MDIC) on Thursday (07/03).

The report reveals that in 2023, the dominance of the dollar in exports continued, totaling US$ 325.5 billion (95.84% of the total), marking a 1.8% growth from 2022. Euro exports reached US$8.4 billion, a 0.9% decrease, and real exports were US$4.5 billion (-9.3%). Noteworthy performances include the British pound at US$ 452 million (+ 17.2%) and the yen at US$ 225 million (+ 8.9%).

Secex emphasizes that almost all commercial transactions declared in reais are associated with the transformation industry: 94% in exports and 99.4% in imports. The euro mirrors this pattern with 81.4% in exports and 98.3% in imports.

Overall Brazilian imports using the real as the declared currency surged 11% in 2023, reaching a record amount of US$ 17.3 billion. Euro imports also grew by 9.2% over 2022, totaling US$ 23.3 billion, while dollar-based imports fell 15.7%.

Notable decreases in imports were observed in the yen (Japan) and yuan (China), with declines of 6.7% and 17.1%, respectively.

Various factors influence the choice of currency in international transactions, such as companies aligning prices with competitors and exporters using the same currency for revenues and production costs as a hedging strategy.

The prevalence of the dollar is attributed to most commodities having internationally established reference prices in dollars. Importantly, the use of the Brazilian currency in government purchases of imported medicines contributes significantly to imports in reais.

For the compilation of foreign trade statistics and the Brazilian trade balance, transactions declared in currencies other than the US dollar are converted to the equivalent in dollars. However, exporters or importers can choose the currency for their operations.

Since 1997, operations have been recorded in currencies other than the US dollar, reflecting the choice of currency for negotiating goods and customs valuation. It's crucial to note that the currency declared in commercial transactions may differ from the one used for foreign exchange payments and receipts. Exchange contracts are managed by the Central Bank, with criteria different from customs records. (Ministry of Development, Industry, Commerce, and Services)