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:

  • Show Comments (0)

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

Is Elis & Tom, Special Edition, Worth the Trouble?

How many people will want to pay for a DVD-CD combo when their equipment ...

British Say Sorry for Brazilian Killed by Police on Subway

An official report says Britain's senior counter-terrorism police officer deliberately misled his own commissioner ...

Brazil’s Finance Minister Vows to Keep Austerity Policy

Latin American stocks gained ground, in line with the U.S. market, after minutes from ...

Brazilian Policemen Try to Invade Congress to Get Better Salaries

In Brazil, about 100 members of the Civil and Military Police from various states ...

France Wants Brazil’s Natural Soy

The French province of Brittany, in the person of the vice governor, Pascale Loget, ...

In Brazil, TV Is Untouchable

We had a dramatic example of the incompetence of the Brazilian State in curbing ...

With a Little Help from China Mining Goes On Unchanged in Brazil

In spite of the world crisis, Brazil’s mining sector, which answered to 48% of ...

My Name is Dilma Rousseff and I’m Running Again for President, Says Brazil’s Lula

Brazilian president Luiz Inácio Lula da Silva said that this coming October election will ...

Brazilian Farmers’ Losses Rise to US$ 13.2 Billion

The losses suffered by Brazilian farmers and ranchers in the last two harvests amount ...