Central bank of Brazil said country’s foreign currency reserves reached a new monthly record in October on persistent government purchases of U.S. dollars in recent months.
In a report, the bank said Brazil's foreign reserves totaled $232.9 billion at the end of October, up from $224.2 billion at the end of September.
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In the first ten months of 2009, reserves were up $26.1 billion. Reserves ended last year at $206.8 billion.
Reserves grew sharply from 2005 through mid-2009 after the central bank started purchasing dollars from the spot market in October 2005. Reserves were at $53.779 billion at the end of 2005.
The level declined beginning in October 2008 as the central bank loaned dollars to Brazilian businesses in the face of the global credit crunch. The central bank also sold dollars directly from the reserves to the foreign exchange market via spot auctions.
Earlier this year, however, the government reversed course, buying dollars from the market at spot auctions.
