With US$ 100 Billion in Reserves Brazil Says It Got Turbulence Vaccine

Brazil has its biggest dollar reserve ever: over US$ 100 billion Brazil's foreign trade reserves have exceeded the US$ 100 billion barrier for the first time in history. The Brazilian Central Bank (Banco Central, BC) disclosed yesterday, February 28, that foreign currency reserves – a kind of savings account that the country has for possible economic shocks – reached US$ 100.3 billion on Tuesday, February 27.

Brazilian Finance Minister Guido Mantega commemorated the fact stating that it "makes the country more resistant to the foreign turbulence that occasionally materializes."

And Mantega recalled that the financial market is nowadays "powerful and boosted", and that Brazil has large reserves to be able to face the situation if there is a large outflow of investment.

"With the reserves, we will be vaccinated against international turbulence," he guaranteed.

International reserves are composed of dollars entering the country due to exports and to financial investment and also due to purchases of the dollars made by the BC.

To purchase the dollars, the BC sells treasury bonds corrected by the Brazilian benchmark interest rate, the Selic, currently at 13%.

When the organization invests the dollars abroad, the remuneration is approximately 5%. The cost to the country of the purchase in dollars is 8%, and therefore analysts criticize the reserve replenishing policy that the BC put in place in 2004.

Mantega stated that it is due to the security that Brazil is immune to turbulence that countries now loan money to the country at lower interest rates. "The security we currently have that turbulence does not affect us is worth gold."

ABr

Tags:

You May Also Like

After 44 Back-to-back Days of Rain São Paulo Goes in State of Attention

São Paulo city, in the Brazilian Southeast, had today its 44th consecutive day of ...

Brazilian Senate Absolves Its President But Many Believe He’s Guilty

The Brazilian Senate narrowly voted Wednesday, September 12, to absolve the embattled senate president, ...

Chinese, Africans and Brazilians Use Internet for Biotech Master’s

Tunisians, Moroccans and Brazilians are exchanging knowledge in biotechnology. The Federal University of Paraná ...

Brazil's beverage company Ambev one of the most profitable

Brazil Discovers the World of Open Capital and Is Making Money

The number of Brazilian companies that opened their capital between 2004 and March this ...

Brazil’s Port of Santos Adopts Verint’s Security

US-based Verint Systems Inc. a leading provider of analytic software-based solutions for communications interception, ...

Brazilian Federal Government Triples Investments in Two Years

Brazil’s federal government invested a total of US$ 8.061 billion (18.4 billion reais) last ...

Brazil Getting Less Kick out of Soccer

While soccer in North America can boast of some successful signs of positive growth, ...

Brazilian Industry Unhappy with Little Domestic Demand

The industrial activity registered in Brazil in April continued the upward trend initiated in ...

COVER STORY – The first world is here

Despite the poverty, violence and corruption, Brazil has more than a few islands of ...

RAPIDINHAS

Judith Kay is fascinated with Brazil and its music. After falling in love with ...