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How to plan expenditure in foreign currency after discharge from the IOF

09/01/2014

This article was translated by an automatic translation system, and was therefore not reviewed by people.

 

 

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Known villain of personal and family budgets , credit cards may have finally won an interesting space for the consumer . With the changes in the Tax on Financial Transactions ( IOF ) in expenses in foreign currency , the payment method can become a good option for those who have an international card .

With the rate of 6.38 % charged on any transaction in foreign currency card ( credit and debit ) , the consumer will have to observe other advantages to choosing the best way to bring money to travel abroad. Before the strategy was to get the best quote , now what should define the strategy are the added benefits of each modality .

This is the tip Reinaldo Domingos, financial educator DSOP that out already warning that the cash should be avoided . "It's the most expensive risk that exists in the market today . The ideal is to carry as little as possible , just for spending exchanged , in situations where the card does not fit , " he explains. Remain then a smattering of plastic - prepaid , credit and debit function of the current account.

For the specialist , this is where the credit card is gaining ground . With the same operation cost, mileage accrual and payment deferred tax make very attractive option .

Alert you to the credit card is synonymous with financial lack , is . Reduce the limit foreign purchases of your credit card to the amount you already have saved to spend on the trip . " It's a way of imitating a prepaid using the benefits of mileage for example ," says Dominic . " A journey involves many emotions , so we enter those thinking ' do not know when I'll return, so buy now and worn , then turn to pay ' , even when there are no conditions for this. The reduction of the limit is a weapon against that impulse . "

Incidentally , this strategy can help to make a buck even while worn. It seems controversial, but it is simple . Instead of paying the IOF on the acquisition of foreign exchange, to use credit you postpone by one month the payment of duty - this time in your financial reserve may be yielding in some application . The gain is small , if the dollar falls to closing the invoice, the result of the strategy will be even better .

risk

Although encouraging, the strategy also has a portion of risk that deserves your full attention. This path is only safe when currency fluctuations are short , ie , when the price of the dollar is more or less stable . As the rates of operations is the closure of the bill , the excess volatility in currency price can take any exercise downhill .

In cases of high volatility or high dollar trend , Dominic explains that "the situation is reversed ." " Buy here , pay here , all before leaving for the trip," he says.

But what if the holidays are longer and trajectory of the dollar starts to oscillate or giving bullish signals during the journey ? In this case the strategy does not put all your eggs in one basket provides an additional margin of safety. You can leave a smaller portion of your money in the prepaid and go to use it in the routine case scenario becomes very unstable .

Before the final decision of the Ministry of Finance as the IOF , prepaid was the darling of the community , since warranty card security and operated at the rate of 0.38 % - which , in the view of Dominic , was already sufficiently High . Now , he has lost much of the appeal , being restricted to superconservadores who prefer to exchange , tariff and tax certainty to any other benefit .

By way of financial education , says Dominic, prepaid still works very well. " It is the best solution for the children, for example , who are beginning to learn to manage their own reserves," he explains.

context

Between Christmas and New Year, increasing the IOF on foreign exchange transactions on prepaid cards aroused the ire of many Brazilians. From night to day shopping in international travel was 6 percentage points more expensive , reducing the purchasing power of consumers during the leisure period .

Until November last year , the credit card accounted for 54.7 % of total spending by Brazilians abroad according to the Central Bank. Ie , in practice, most Brazilians have already paid them so criticized 6.38 % IOF .

 For José Raymundo Jr. , certified financial consultant of the Brazilian Institute for the Certification of Financial Professionals ( FPSB ) , this scenario is unlikely to change . However , consumers should be especially conscious of the currency trends .

With the new cost rates , the rates in kind shall return to the evidence. However , market fluctuations and political contexts can hold surprises . " Ideally, when you miss three or four months for the trip , tourists begin to check daily the dollar and buying go gradually," he says.

Currently, according to Raymundo , tourists take between 10 % and 30 % of the total in-kind . This portion can go back to 40 % , operating margin before the prepaid boom .

 

Source : IG

 

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This article was translated by an automatic translation system, and was therefore not reviewed by people.

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