Cristina Índio do Brasil
Reporter Agência Brasil

Rio – Brazil's international reserves reached US$62 billion at the end of the first quarter of this year as a result of an increase of US$9 billion between December 2004, and the end of the first quarter, in March 2005. "That was a significant increase in absolute terms," says Adriana Beringuy, of the government statistical bureau (IBGE), where she monitors National Accounts.

The IBGE says the increase was the biggest in the first quarter of any year in over a decade. And the inflow of dollars made it possible for the Brazilian Central Bank to buy dollars without exerting pressure on the exchange rate. "The bank bought dollars to further strengthen the country's reserves," explains Beringuy. "That sends a positive signal to the international market and gives Brazil some slack in case of a foreign financial crisis."

Translator: Allen Bennett