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:

You May Also Like

Fire & Fun

The French brought to Brazil the quadrilha, which is a theatrical dance that tells ...

Brazil Hopeful the Amazon Will Be Deemed Free of Hoof and Mouth Disease

According to the Brazilian Ministry of Agriculture, Livestock, and Supply, Brazil is about to ...

Main campus of Brazil's Universidade de São Paulo (USP)

Brazil Tightens the Noose on Colleges’ Freedom of Expression

The sentencing of two students from the University of São Paulo (USP) to prison ...

Brazilian Indians Sitting on World’s Largest Diamond Mine

The Brazilian government has just issued a Temporary Measure (Medida Provisória) (MP) which will ...

Brazil Promotes Breast-Feeding Up to the Age of Two

The importance of breast feeding until the age of two and the supplementation of ...

UK Prosecution Refusal to Charge Killers of Brazilian Angers Dead’s Family

Following British prosecutors refusal to bring charges over the death of Brazilian citizen Jean ...

Green Car is Job One Announces Ford at Brazilian Seminar

Ford announced during a seminar on Brazilian agribusiness, promoted by the Ministry of Agriculture ...

Brazil: Global Forum on Education Condemns Conservatism and Private School

The World Education Forum which ended this Saturday, March 26, drew up a final ...

Brazilian Ceramic Tile Factory with Subsidiaries in the US Exports to 80 Countries

Eliane S/A, a Brazilian ceramic tile factory, exported the equivalent to US$ 78 million ...

US’s Executive AirShare Orders Five Additional Brazilian Phenom Jets

Brazilian aircraft manufacturer Embraer has signed Executive AirShare, of Kansas City, Missouri, to a ...