Foreign Reserves and Investors Way Up in Brazil

Brazil’s international reserves reached US$ 62 billion at the end of the first quarter of this year as a result of an increase of US$ 9 billion between December 2004, and the end of the first quarter, in March 2005.

“That was a significant increase in absolute terms,” says Adriana Beringuy, of the government statistical bureau (IBGE), where she monitors National Accounts.


The IBGE says the increase was the biggest in the first quarter of any year in over a decade. And the inflow of dollars made it possible for the Brazilian Central Bank to buy dollars without exerting pressure on the exchange rate.


“The bank bought dollars to further strengthen the country’s reserves,” explains Beringuy. “That sends a positive signal to the international market and gives Brazil some slack in case of a foreign financial crisis.”


Foreign Investors


The IBGE reports also that this year there has been a sharp rise in stock market investments by foreigners. From US$ 851 million (2 billion reais) in the first quarter of 2004, the total has risen to US$ 2.12 billion (5.9 billion reais) during the same period in 2005.


According Beringuy, that is a positive sign as it means the foreign investor sees the Brazilian economy in a favorable light.


The IBGE also reports an increase in corporate financial inflow to branches in Brazil. It went from US$ 850 million (2.1 billion reais), in the first quarter of 2004, to US$ 2.9 billion (7 billion reais), in the same period of 2005 –  an increase of 242% in what is a type of foreign investment.


ABr – www.radiobras.gov.br

Tags:

Ads

You May Also Like

Brazilian Indians Ask Protective Spirits to Receive Bishop Dom Luciano

Thousands of people have flocked to the historical city of Mariana, in the southeastern ...

Newspaper and Radio Owner Executed Gang-Style in Brazil Northeast

Brazilian media owner and radio host José Givonaldo Vieira was shot and killed by ...

Por aí

European flavorDutch-born, German-raised, US-based, totally-Brazilian musician Hendrik Meurkens and his harmonica and vibraphone are ...

While Waiting for Moody’s Upgrade Brazil Sells Bonds Overseas

Taking advantage of the lowest borrowing costs since October 2007, the Brazilian government, in ...

US Flight Safety Foundation Urges Brazilian Police to Keep Off the Boeing’s Inquiry

The American NGO Flight Safety Foundation has released a note in which it calls ...

Give Us an Escape Goat

Brazil finds itself obsessed with assigning blame for energy crisis effects when damage is ...

Bad News from US Means Good News for Brazilian Stocks

Latin American shares moved higher today as Mexico’s central bank left interest rates unchanged, ...

In Sí£o Paulo, Brazil, Traffic Kills 4 a Day and a Robbery Happens Every 40 Seconds

Every day four people die from a traffic accident in São Paulo, South America’s ...

Brazilian Indians Hold Three Hostages to Have Their Truck Fixed

The 13 chiefs of Brazil’s Apinajé people held hostage the regional manager of the ...

Businessmen Excited About Brazí­l’s Arab Summit

Commercial opportunities seem to be one of the main attractions for delegations arriving in ...