• Categories
  • Archives

Brazil Buys US$ 1 Billion Abroad to Add to Reserves

Brazil’s Federal Treasury announced that it had acquired US$ 1 billion
through the sale of bonds denominated Global 2015. The operation was headed by
two banks: Citigroup Global Markets Inc. and JP Morgan Securities Inc. The
asking price was 99.829% of par, offering a 7.90% rate of return to investors.

The financial settlement of the operation is scheduled for March 7, and
interest payments will be made on September 7 and March 7 of each year until the
bonds are due, on March 7, 2015.


The bonds were issued to bolster the country’s international reserves, with
an eye towards the amortization of foreign debt, but the resources may also be
used by the Central Bank for currency market interventions.


It was determined last year that the country would acquire US$ 6 billion to
add to its reserves. So far bonds have been issued in yens, euros, and dollars,
totaling approximately US$ 4.5 billion.


Foreign Debt


In January, Brazil’s balance of payments (summarizing the country’s economic
transactions with the rest of the world) achieved a US$ 2.005 billion surplus,
in consequence of a US$ 818 positive balance in current transactions (flows
involving goods and services) and a US$ 1.187 billion surplus in financial
accounts (monetary flows between Brazil and the rest of the world).


These figures appeared in a report on the Foreign Sector released February 21
by Brazil’s Central Bank (BC). Emphasis is given to January’s US$ 2.183 billion
trade surplus and the influx of US$ 1.218 billion in foreign investments. The BC
report also noted that Brazil’s international reserves rose US$ 1.087 billion in
January, raising the total to US$ 54.022 billion.


According to the BC’s Economic Department, in November, 2004, Brazil’s
foreign debt came to US$ 203.527 billion.


ABr

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Your email address will not be published.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

Entrepreneur’s Fair 2.0 Comes to Brazil

Brazil’s Entrepreneur’s Fair to be held in Minas Gerais state has two main objectives, ...

United Brazil and South America Depend Less on US and EU, says Lula

On his biweekly radio program, Brazilian President Luiz Inácio Lula da Silva said today ...

Body of Brazilian General Stays in Haiti Until Brazilian Team Investigates His Death

Approximately 300 people participated, today, in Port-au-Prince (Haiti), on a ceremony in the honor ...

Boeing Tragedy: Aviation Leaders Beg Brazil to Not Indict Air Controllers

Several international aviation organizations including the  Flight Safety Foundation and the National Business Aviation ...

Sapatoterapia, one of Brazil's shoe manufactures at Germany's GDS/GLS

German Fair Brings Close to US$ 20 Million to Brazilian Shoemakers

Shoe companies from Brazil participating in the March edition of GDS/GLS – the International ...

Lula Wants Brazil and Its Mercosur Partners to Patch Up Differences

In a statement to the press after his meeting Thursday, March 16, with the ...

Brazil Says Amazon Deforestation Reached 20 Year Low

The president of Brazil, Luiz Inácio Lula da Silva, announced that deforestation rates in ...

Brazil Has 96.6 Million Cell Phones, 80% of Which Are Prepaid

There are 96.6 million celular phones in operation in Brazil. The figure was disclosed ...

Brazil Confirms Its Santos Find Has Up to 4 Billion Barrels of Light Oil and Gas

Brazil's state-controlled oil and gas multinational Petrobras has just announced that the completion of ...

Brazil and LatAm Pressed to Turn Commodities Boom Into Way Out of Poverty

Latin America is poised to enjoy exceptionally high prices for its exports during the ...