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Brazil May Use Sovereign Fund to Buy U.S. Dollars, Estado Says

October 11th, 2009

dollars1Brazil may tap its sovereign fund to buy dollars in a move to stop its national currency, the real, from strengthening against the U.S. currency, O Estado de S. Paulo said, citing a finance ministry source it did not identify.

Dollar purchases by the national treasury using the fund, which has resources of about $17 billion, would require finance ministry approval, the newspaper said without citing anyone.

The ministry doesn’t plan to set up a new sovereign fund to buy dollars, Estado said.

By Diana Kinch

http://www.bloomberg.com


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