Devaluation of the real causes record drop in Brazil’s international reserves in 11 years

RIO DE JANEIRO, Oct. 19 (Xinhua) — The depreciation of the Brazilian real against the dollar and the actions of the Central Bank to curb the depreciation of the currency caused Brazil’s international reserves to be at the lowest level in 11 years, according to the report. the issuing entity.

At the beginning of October, Brazil’s international reserves were around 326 billion dollars, the same level as in April 2011. In the accumulated figure for the year up to October 10, Brazil’s international reserves decreased by 35.1 billion dollars. dollars, a decrease of 9.7 percent.

In the last month, Brazilian reserves had the biggest losses this year. According to the Central Bank, between September 9 and October 10, the decrease reached almost 12,000 million dollars, equivalent to 3.5 percent of the total value in the period.

The sales of dollars by the Central Bank to prevent the depreciation of the real, as well as the use of reserves by the Government to meet short-term obligations explain the decrease in reserves.

According to the Central Bank, Brazil’s international reserves at the end of 2021 were in US dollars (80.34 percent), euros (5.04 percent), Chinese renminbi (4.99 percent), pound sterling (3, 47 percent) and gold (2.25 percent) mainly.