Difference Is in the Composition of International Reserves and the Fact That the US Is the Issuer of Its Own Currency, While Countries Like Brazil Need to Buy It to Protect Themselves
Last week, during an event, President Lula stated that Brazil is protected against Donald Trump’s “tariff hike” due to its international reserves. A survey by the World Bank reinforces the president’s statement: Brazil is among the ten countries with the largest dollar reserves in the world.
According to the report, Brazil ranks ninth, with approximately US$ 346.4 billion. This figure surpasses that of the United States, which ranks 11th, with US$ 234.1 billion. The information was released by the newspaper Valor.
List of the Largest Holders
The ranking is led by China, with US$ 3.3 trillion. Following are Japan, with US$ 1.2 trillion, and Switzerland, with US$ 794.9 billion. India, Russia, Saudi Arabia, Hong Kong, and South Korea are also ahead of Brazil.
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Brazil, even behind larger economies, remains well positioned. Right after comes Singapore, with US$ 344.5 billion.
What Are International Reserves For
According to the Central Bank (BC), international reserves are assets that the country holds in foreign currencies. Most are in dollars, but there are other types of currencies as well. They serve as a type of insurance, ensuring that the country can meet obligations abroad.
This resource also helps mitigate impacts from crises, such as currency or tariff crises. According to the BC, in the floating exchange rate model adopted by Brazil, these reserves help stabilize the market.
Thus, they prevent sharp fluctuations of the real against the dollar and provide more security for those operating in the economy. This stability is considered essential to maintain confidence in the country.
With information from Valor Econômico.

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