Despite Crisis Brazil’s Central Bank Posts Over US$ 1.3 Billion Profit

Central Bank of Brazil Brazil's Central Bank (BC) posted net profit of 3.173 billion Brazilian reais (US$ 1.366 billion) in the first half of this year due, mainly, to surpluses obtained in open market operations and in exchange equalization of federal government operations.

This information was supplied by the president of the organization, Henrique Meirelles, during an address to the Mixed Plans and Budget Committee at the National Congress, where he spoke about the objectives of monetary, credit and exchange policies developed by the bank.

Meirelles also spoke about the fiscal impact of these operations in recent months, after suffering the impact of the international financial crisis. He pointed out that, despite the initial paralysis, "the concession of credit gradually returned to normal and we are in a trajectory to recovery".

The president of the BC also stated that the liberation of 91 billion reais (US$ 39.2 billion) of the compulsory loan made by banks alongside forecasted liquidity on the market with the liberation of reserves granted sustainability to the Brazilian credit market.

After all, he said, "The purpose of international reserves is not to generate profit to the Central Bank, but to protect the country against liquidity crises."

Meirelles also added that although the Central Bank turned US$ 6.3 billion of reserves to cash sales, the total reserves have remained at US$ 207 billion due to appreciation of the dollar.

ABr

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