Brazil Property News: Brazil spends millions to boost economy




22nd October 2008 03:56


People thinking about buying property in Brazil may be interested in investments the government has made to boost its economy.

Central bank president Henrique Meirelles has said Brazil has spent $22.9 billion (£13.9 billion) on stabilising the currency against the US dollar, the Associated Press reported.

The economy has been boosted through swaps, loans and direct auctions of dollars that will not be put back into the $200 billion the country has in reserves, Mr Meirelles said.

He added the amount spent is small compared to the figures spent by central banks in other countries.

Financial issues hitting the world led to investors withdrawing money from emerging markets including Brazil, resulting in the real declining over 40 per cent since August, the news source said.

On Tuesday, the real was 2.2 to the dollar.

Meanwhile, it was recently announced that Brazil's state development bank is to offer 5.5 billion reais of support to finance agribusiness and construction companies that need working capital.


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