Brazil’s Reserves Break Record: US$ 210 Billion

Brazil's Central Bank Brazilian international reserves reached US$ 209.576 billion in liquidity this past Thursday, July 16. This was the highest ever level of foreign currency available in Brazil.

The figure was disclosed by the Central Bank of Brazil and surpasses the previous record, which was US$ 209.38 billion, attained on October 6th last year. Starting on that date, the Central Bank was forced to spend some of the reserves to contain the appreciation of the dollar, which became more intense with the worsening of the international financial crisis, starting in September 2008, and the withdrawal of foreign investment from the country.

As of early December, the dollar was equivalent to 2.53 Brazilian reais, but from then on, the value of the United States currency started to decline: it stabilized at 2.20 reais in the first quarter of the year; from April onwards, it decreased even further, at around 2.00 reais; and over the last 30 days it varied from 1.90 to 2.00.

Such stability in exchange rates led the monetary authority to resume its pre-crisis policy, of purchasing dollars whenever possible, to restore the reserves. Last May, the Central Bank reassumed its position as a buyer, taking advantage of the increased supply of dollars in the domestic market, prompted by the gradual re-establishing of foreign investment.

Expenditure by the Central Bank aimed at sustaining the value of the real against the dollar depleted the reserves down to US$ 199 billion, on February 19th this year, but with the improvement of the economic scenario, domestically and abroad, the monetary authority started purchasing again, having bought US$ 2.74 billion in May, US$ 3.24 billion in June, and another US$ 1.15 billion this month.

ABr

Tags:

Ads

You May Also Like

US Imports from Brazil’s Co-ops Grow 420% in Value and 916% in Volume

The United States, was the main importer of Brazilian cooperatives products last year. The ...

Brazilian Tourism Company Looking for Asian and Arab Investors

Gold Sea, a new Brazilian tourism company, was established last week, in the city ...

Brazil’s Eliane Elias Revisits Old Friend Jazz Great Bill Evans with Tribute

Pianist Bill Evans, one of the most influential jazz musicians of the 20th century ...

US Private Prison Industry Booming Thanks to Immigrant Inmates

Immigrants are behind one of America's fastest growing, most profitable industries. That shouldn't come ...

Brazil’s Flip Flops Find Their Way to the Oscars

Havaianas flip flops will be featured in the Oscar nominee gift basket and at ...

Amnesty Condemns Killings of Police in Brazil and Warns Against Retaliation

Amnesty International released a note saying the it totally repudiates the recent wave of ...

Brazil and France Exchange Ideas on Hunger and Food Programs

Besides encouraging initiatives in the areas of culture and history, the Year of Brazil ...

Employment Rate Up But Hours Worked Down in Brazil

Brazil’s National Confederation of Industry (CNI) released, yesterday, its industrial indicators for July. The most ...

Lula on Brazil: ‘We Shall Surprise and Grow Over 5%’

Brazilian President Luiz Inácio Lula da Silva once again declared that this year will ...

Child Sex Abuse is Widespread in Brazil

Around 47% of the Brazilian cities in which child and adolescent sexual abuse exists ...