The head of the Central Bank’s Statistics Department, Fernando Rocha, said on Wednesday, 31, that the Gross Government Debt, of 90.0% of the Gross Domestic Product (GDP) in February, represents a record value for the historical series.
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According to him, one of the main reasons for this movement was the exchange rate effect. In practice, the exchange rate devaluation in February raised the external debt.
From January to February, the external debt went from 11.1% of the Gross Domestic Product (GDP) to 11.5%. As the gross debt does not take into account Brazil’s international reserves, this boosted the gross debt.
In the case of net debt, the increase seen in February was impacted by new net debt issues by the National Treasury, in a scenario of nominal deficits. From January to February, net debt went from 61.4% to 61.6% of GDP.
“The increase in net debt in February was only not greater because the exchange rate adjustment reduced the amount,” Rocha said at a press conference on the February Tax Statistics, published in the morning.
In practice, with the exchange rate devaluation in February, net debt was favored, since the amount of international reserves is taken into account in this case.