São Paulo – The Brazilian Central Bank (BC) reported this Thursday (5) that Brazilians withdrawals surpassed in BRL 8.246 billion (USD 2.32 billion) the deposits in April. It was the worst result for a month since the beginning of BC’s historical series in 1995.
From January to April of this year, savings accounts have a cumulative deficit (with more withdrawals than deposits) of BRL 32.296 billion (USD 9.11 billion). This year’s deficit exceeds the deficit of the first four months of the previous year, when savings accounts had a deficit of BRL 29.081 billion (USD 8.20 billion).
In April, withdrawals totaled BRL 161.5 billion (USD 45.56 billion), with deposits at BRL 153.2 billion (USD 43.22 billion). The total amount within savings accounts is of BRL 640.5 billion (USD 180.69 billion). Earnings credited to investors’ accounts totaled BRL 4.127 billion (USD 1.16 billion).
Since January 2005, savings accounts are registering a significant withdrawal of resources. This is attributed to the increase of interest rates, which turn investments in mutual funds more attractive, and to the deteriorating profitability against inflation.
According to BC, the economic downturn also contributed to the loss of resources from savings accounts. Due to the crisis and unemployment, Brazilians have less leftover money to invest in savings accounts and need to withdraw more to pay their debts.
*Translated by Sérgio Kakitani
