Reuters.com UPDATE 1-Brazil to keep dollar purchases to boost reserves http://www.reuters.com/article/companyNewsAndPR/idUSN2441074520070424
Tue Apr 24, 2007 (Adds dollar purchases, trade comment) BRASILIA, April 24 (Reuters) - Brazil's central bank will continue to buy dollars as part of an effort to build international reserves, a nominee to the bank's board said on Tuesday. "The policy to accumulate reserves should continue," Mario Toros said at a hearing in Brazil's Senate to confirm his nomination as central bank director of monetary policy. Toros said Brazil has been able to withstand recent turmoil in international financial markets because of the volume of the country's international reserves, which are near $120 billion. The central bank has bought dollars on the spot foreign exchange market daily, which has also helped prevent the local currency, the real (BRBY: Quote, Profile, Research), from gaining too much. The bank said in a report on Tuesday it bought a net $8.3 billion in dollars in the domestic currency market in March. The real fell 0.05 percent on Tuesday to 2.038 per dollar. The currency is trading near its strongest level in six years. Toros said the strong currency is a result of Brazil's trade surplus and investment inflows to the country that are not just seeking speculative gains. © Reuters 2007. All rights reserved.
