Brazil - SWF presumed
Country: Brazil
Established: N/A
US$ Billion: N/A
Origin: Non-commodity
Summary:
Brazil with its growing foreign currency reserves at around $US 195.3 billion is planning to develop its own Sovereign Wealth Fund. The fund will probably start out with $20 billion dollars of capital and would not derive its wealth from foreign reserves. In addition, the fund would most likely focus on corporate debt instruments rather than equity stakes in firms.
News and Updates
5/7/2008
By the end of June, Brazil might finally have a SWF
According to Bloomberg, “Brazil's Finance Minister Guido Mantega said the country may create a sovereign wealth fund by the end of June in a bid to secure higher returns on growing cash holdings.
'The sovereign fund is a more efficient way to use the excess dollars that come to Brazil,' Mantega said in an interview in Brasilia today. Asked whether the fund may be started before the second half of the year, he said 'yes.'
Mantega declined to say whether the government will use cash from the central bank's international reserves or Treasury funds. The fund may start with as much as $10 billion, Mantega said in November."
read more: Bloomberg
1/15/2008
Possible SWF to deal with growing foreign reserves
Brazil might create a sovereign wealth fund with the primary aim of intervening in foreign exchange markets to counter the appreciation of Brazil's currency.
According to Brazilian Finance Minister, Guido Mantega "it will have the function of reducing the offer of dollars in the market and helping the real to appreciate less," he told the Financial Times.
Location
Banco Central do Brasil
Setor Bancário Sul
SBS - Quadra 3 - Bloco B - Ed. Sede
Caixa Postal 08670
70074-900 Brasília (DF)
Brazil
Register of Foreign Exchange Operations and Foreign Investments
+55 61 3414-1380
gabin.decec@bcb.gov.br
Website
Banco Central do Brasil
Brazil Ministry of Finance
1. All figures quoted are from official sources, or, where the institutions concerned do not issue statistics of their holdings, from other publicly available sources.
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