The movement to reduce the stock of Brazilian international reserves, which is at the lowest level in more than 11 years, has been due to variations in the values of bonds, under the effect of the monetary tightening cycle in the United States, he said this Monday ( 24) the head of the Statistics Department of the Central Bank, Fernando Rocha.
According to him, there was a loss of value of the papers by parity of the dollar, with the appreciation of the North American currency in relation to other currencies, in the midst of high interest rates in the United States and signs of further tightening ahead. In addition, rising interest rates lower the prices of bonds traded on the market, he adds.
In September, the amount of reserves totaled US$327.6 billion, well below the US$358.4 billion in January this year. The level is the lowest since March 2011, when it was at US$317.1 billion.
Rocha said that in the first nine months of the year, the BC effectively operated reserves by buying or selling dollars only in February, April and September.
“Furthermore, the loss in the value of reserves measured at the market price in dollars results from the monetary policy of the United States, which increases the interest rate and reduces the price of paper, and values the dollar in relation to other currencies, causing a loss parity,” he said.
In September alone, the variation in bond prices caused a reduction of US$6.5 billion in reserves, while the loss by currency parity was US$2.5 billion.
Source: CNN Brasil
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