Brasília – The Brazilian Central Bank (BC, in the Portuguese acronym) has announced this Friday (25th) a set of measures designed to improve liquidity in the country. The rules regulating compulsory deposits have been altered, and are expected to increase liquidity by R$ 30 billion (US$ 13.5 billion).
According to the BC, the measures were based on compulsory deposit figures from the past few years; said deposits have increased from R$ 194 billion by the end of 2009 to approximately R$ 405 billion (US$ 182 billion) at this time. The BC has also listed the recent slowdown in credit, relatively low insolvency, and lower risk in the national financial system.
One of the measures adopted allows up to 50% of compulsory deposits made as a result of investment deposits to be met via credit operations. In this case, for a period of one year, the banks will be allowed to allocate 50% of the deposited sum to procure further credit or purchase diversified portfolios (natural and legal persons) from other institutions.
*Translated by Gabriel Pomerancblum
