Brasília – The Central Bank of Brazil posted profit of 15.7 billion Brazilian reals (US$ 9.4 billion) in 2010, informed Antero Meirelles, the Managing director at the organisation, on Thursday (24). In the second half, the result was 4.9 billion reals (US$ 2.9 billion), whereas in the first half, it had reached 10.8 billion reals (US$ 6.5 billion).
The values for the first half have been transferred to the National Treasury and those for the second will be transferred in ten days. According to Meirelles, the volume reached in the year is mainly the result of interest on operations in reals and remuneration of the unique quota of the National Treasury and also of compulsory deposits by banks.
"The Central Bank profit may only be used by the treasury to reduce debts. It cannot become budget funds," said the director.
The result does not take into consideration exchange volatility. In an accounting mechanism, to avoid daily accounting of the difference between the dollar and the real, the Central Bank transfers this volatility to the National Treasury. Without this mechanism, the result would be 32.8 billion reals (US$ 19.6 billion) negative.
The 2010 result is almost three times greater than the 2009 result, when the Central Bank result reached 5.6 billion reals (US$ 3.3 billion). In 2008, the result was 13.3 billion reals (US$ 7.9 billion).
The average cost for collection of international reserves was 7.74% and profitability, 1.88%, as a result of a rate of 5.86% for maintenance of international reserves, without exchange rate variation. The average volume of reserves converted into reals was 455 billion.
"The benefits of reserves and having a kind of insurance against crises by far exceeds any cost related to establishing reserves," said the director.
*Translated by Mark Ament
