Brasília, July 30, 2003 (Agência Brasil - ABr) - The balance of the monetary base (money in circulation) stood at R$ 63.8 billion in June, which represents a 2% decline in relation to May, but, over the past 12 months, the balance shows cumulative growth of 25.9%. These figures were released yesterday (29) by the Central Bank (BC), in a report prepared by the Economic Department on "Monetary Policy and Credit Operations of the Financial System."

Considering the criterion of average daily balances, the monetary base was a little bit larger, attaining R$ 65.7 billion, a decline of 0.8% in relation to May, and an increase of 29.9% over the past 12 months, consistent with the program established for the second quarter. For the month, the currency balance rose 0.8%, reaching R$ 38.8 billion, while the bank reserve balance fell 3%, to R$ 25 billion.

As regards the sources of monetary emissions, activity in the unified account of the Federal Treasury grew R$ 1.2 billion, while overall operations by the financial system resulted in a R$ 1.5 billion reduction. Operations with Federal Government titles (notes, bonds, etc.) totalled R$ 9.5 billion, against net redemptions of R$ 2.7 billion in Central Bank titles. There was a reduction of R$ 990 million in operations with titles on the primary market and an expansion of R$ 5.8 billion on the secondary market. (DAS)