Despite Crisis Brazil’s Central Bank Posts Over US$ 1.3 Billion Profit

Brazzil Magazine covers

Central Bank of Brazil Brazil's Central Bank (BC) posted net profit of 3.173 billion Brazilian reais (US$ 1.366 billion) in the first half of this year due, mainly, to surpluses obtained in open market operations and in exchange equalization of federal government operations.

This information was supplied by the president of the organization, Henrique Meirelles, during an address to the Mixed Plans and Budget Committee at the National Congress, where he spoke about the objectives of monetary, credit and exchange policies developed by the bank.

Meirelles also spoke about the fiscal impact of these operations in recent months, after suffering the impact of the international financial crisis. He pointed out that, despite the initial paralysis, "the concession of credit gradually returned to normal and we are in a trajectory to recovery".

The president of the BC also stated that the liberation of 91 billion reais (US$ 39.2 billion) of the compulsory loan made by banks alongside forecasted liquidity on the market with the liberation of reserves granted sustainability to the Brazilian credit market.

After all, he said, "The purpose of international reserves is not to generate profit to the Central Bank, but to protect the country against liquidity crises."

Meirelles also added that although the Central Bank turned US$ 6.3 billion of reserves to cash sales, the total reserves have remained at US$ 207 billion due to appreciation of the dollar.

ABr

Tags:

You May Also Like

Brazzil Magazine covers

Without Health Insurance Brazilians in US Fear Another Medical Tragedy

Brazilians who live in Massachusetts and who were friends or knew FabÀ­ola de Paula, ...

Brazzil Magazine covers

Morocco’s Chancellor in Brazil to Deliver King’s Letter

Morocco's minister of Foreign Affairs and Cooperation, Mohammed Benaí¯ssa, arrives in Brazil today, March ...

Brazzil Magazine covers

Things Have Never Been So Good for GM Brazil

Plummeting automobile sales may by a worldwide concern, but not for General Motors Brazil ...

Brazzil Magazine covers

Forever Tunes

Producer Ricardo Cravo Alvim thinks that marchinhas resist because they were created with the ...

Brazzil Magazine covers

4,000 Foreigners from 65 Countries Come to Brazil’s Leather Fair

Brazilian shoe producers exported higher added value products last year. The average price of ...

Brazzil Magazine covers

Brazil’s Domestic Debt Is Out of Control, Says Expert

In recent years Brazil’s foreign debt has been falling, while domestic debt has been ...