Brasília - Net foreign direct investment in Brazil amounted to US$ 6.089 billion in August, surpassing the monthly average by a considerable margin, as a result of a US$ 4.9 billion stock swap between companies. Consequently, net investment so far this year rose to US$ 11.734 billion, ahead of 2003's year-end figure of US$ 10.144 billion. This information was provided by Eduardo Loyo, the Central Bank's (BC) Director of Economic Policy.

The BC's "External Sector" report indicates that international reserves according to the international liquidity concept remained stable at US$ 49.6 billion, only US$ 71 million less than in July. The BC did not intervene on the domestic market, and the most conspicuous external operation was a US$ 534 million interest payment.

The BC calculated the country's consolidated foreign debt, through July, at US$ 223.322 billion, of which US$ 18.652 billion represent inter-company loans. Government debt, therefore, was US$ 204.670 billion, down US$ 8.793 billion in comparison with March.

The government's foreign debt has been falling gradually since last September, when it hit a peak of US$ 219.724 billion.

Agência Brasil
Reporter: Stênio Ribeiro
Translator: David Silberstein
09/23/2004