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

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Your email address will not be published.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

Brazil Leads Creation of South American NATO. US Counter Attacks

Member states of the Union of South American Nations (UNASUR) signed a pact on ...

Rapidinhas

Secret revealed Hillary Rodham Clinton, passed every test during her recent trip to Brazil: ...

Leader of Prison Massacre in Brazil Goes from 632 Years in Jail to Innocent

In 1992 there was a rebellion at the infamous Carandiru prison in São Paulo, ...

Brazil Sees Biotecnology as Panacea for Economic and Ecological Ills

The biotechnology development policy, launched on Thursday, February 8, by Brazilian President Luiz Inácio ...

A Brazil-Argentina Joint Effort Peers into Deep Space

Built among other by Brazilians scientists, Pierre Auger cosmic ray observatory, installed in the ...

Brazil Talks About Worry and Offers to Help Bolivia

Brazil’s Ministry of Foreign Relations issued this Saturday, June 4, a note about the ...

Presidential candidate, Senator Heloísa Helena

Snubbed by Brazil’s Lula, This Woman May Force Him into a Runoff

A challenge from the left has shaken up Brazil’s presidential election, which the incumbent, ...

Brazil and Mercosur Snub the US and Back Venezuela for UN Seat

Mercosur full members expressed on Friday, July 21, support for Venezuela to occupy the ...

Brazil’s Trade Balance Reaches US$ 23 Billion, 5% More than Last Year

Brazilian exports added up to US$ 3.06 billion on the third week of July, ...

Brazil Celebrates Record Number of Tourists and Tourism Dollar

Brazil has received about 3.4 million foreign tourists who spent in the country US$ ...