Brazilian amount is around US$ 326 billion, similar to the one registered in April 2011
Brazil’s international reserves fell this month to US$ 326 billion, according to Dice of the BC (Central Bank). It is the lowest level in 11 years.
International reserve is the amount a country has in foreign currency. The values work as an “insurance” for obligations abroad.
As of April 25, 2011, Brazil had US$326.22 billion in international reserves. From there, the amount only increased until September 27 this year. International reserves recovered the next day, surpassing US$ 327 billion. But on October 7, they were back to $326 billion.
International reserves, that is, the country’s assets in foreign currency, work as a kind of “safety mattress” for Brazil to face obligations abroad and shocks of an external nature, such as currency crises.
As Brazil adopts the floating exchange rate regime, this cushion is used by the Central Bank to mitigate sudden fluctuations in the real. According to BC, the objective is to “keep the functionality of the foreign exchange market” and give “greater predictability and security for market agents”.
International reserves rose in the governments of Luiz Inácio Lula da Silva (EN) and Dilma Rousseff (PT). They also had a positive balance in the government of Michel Temer (MDB).
After falling in the first 2 years of the government of Jair Bolsonaro (PL), the international reservations from Brazil presented positive balance last year. They rose from $355.6 billion in 2020 to $362.2 billion in 2021.
In 2022, the value has been decreasing. The biggest drop of the year was registered from September 9 (reserve of US$ 338.21 billion) to October 10 (US$ 326.28 billion): decrease of almost US$ 12 billion. The last data provided by the BC is from October 17: US$ 326.02 billion.
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