Money Grows in Brazil at a Rate of 24% a Year

Brazil’s monetary base (money in circulation) grew 0.9% in September, reaching a total of US$ 25.469 billion (73.198 billion reais), on the basis of average daily balances. Currency volume rose 1.4%, while bank reserves fell 0.2%.

These figures are part of the monthly report for September on Monetary Policy and Credit Operations of the Financial System, released yesterday by the Brazilian Central Bank (BC).

The document reveals that the monetary base has expanded 24.4% overall during the last twelve months, in line with the monetary goals established for the third quarter.

The BC report also indicates that credit operations grew 1.4% last month, for a total volume of US$ 160.1 billion (R$ 460.3 billion), the equivalent of 26.3% of the Gross Domestic Product (GDP), compared with 26% in August and 25.4% in September, 2003.

This result is chiefly a response to the demand for credit to build up inventory for year-end sales and loans to cover the costs of planting crops for the 2004/2005 agricultural year, despite the fact that the average cost of credit operations with non-earmarked funds has risen 1.2%, for an annualized average rate of 45.1%.

Interest rates were up the most, 1.6%, for an annualized rate of 30.4%, in contracts with legal entities.

In the case of personal loans, the increase amounted to only 0.1%, in comparison with the August average, for an annualized rate of 63.2%.

Agência Brasil
Translator: David Silberstein



You May Also Like

Fred Stole a Goal for Brazil But Couldn’t Steal the Match’s Ball

Twenty-two-year-old Brazilian striker Fred netted his first World Cup goal on Sunday less than ...

Brazil/US Trade Agreement Seems Close at Hand

Brazil and the United States signed a letter of intent for the creation of ...

Civil War in Brazil Is No Figure of Speech

Have Brazilians stopped to reflect, as they should, over the crime figures in the ...

Gol's Boeing 737 fallen in the Amazon, Brazil

Brazil’s Police Rule US Pilots Caused Country’s Worst Air Tragedy

Brazil's federal police has finished its investigation on the causes of the worst Brazilian ...


Of all changes occurred in the last two decades, the most impressive was the ...

Brazilian Indians Want Multinationals to Return Their Land

At the heart of the Pascoal Mount area, 200 Pataxó from 11 villages located ...

Arabs and Brazil Keep the Talks and Deals Going

The Arab Brazilian Chamber of Commerce (CCAB), in partnership with the Brazilian Export Promotion ...

Five Presidents Join Anti-Globalization World Social Forum in Brazil

Finding comfort and solidarity under the slogan "another world is possible," tens of thousands ...

Brazil Starts 8,000-Men War Games on Border as Message to Neighbors

With the "main target" being the recovery of a bi-national hydroelectric dam that has ...

In Brazil, Sterilization Is the Best Pill

Registered sterilizations in the central-west of Brazil, the country’s new agriculture frontier, reach 59 ...