A mudança no papel das reservas internacionais na economia brasileira entre 1994 e 1999

Abstract

This study investigates the role of international reserves in the Brazilian economy from 1994 to 1999, a period characterized by currency crises and the implementation of the Real Plan. Through a descriptive and quantitative approach, utilizing secondary data and bibliographic analysis, the study presents the significant transformations that occurred during this timeframe. International reserves played a critical role as a safeguard for the Real Plan by effectively contributing to the economic stabilization of the country by accumulating reserves as a result of the Brady Plan agreement and the liberalization of the Brazilian economy. However, these reserves were also impacted by international crisis in Mexico, Asia, and Russia, resulting in fluctuations of it. During this period, reserve management became a primary responsibility of monetary policy, with the implementation of high interest rates to attract foreign investors, while exchange rate policy was tied to the estabilization’s plan. The country experienced successive trade deficits due to the elevated interest rates, finance of the current account deficit through increased capital inflows, as well as economic stagnation and increase of the country risk. In conclusion, this study demonstrates a shift in the role of international reserves between 1994 and 1999, as their management became closely intertwined with the Real Plan's operation by maintaining the necessary exchange rate parity for the functioning of the plan as their utilization as a defense mechanism during international crises was accelerated by global circumstances. This study aims to contribute to understanding of the significance of international reserves and their impact on the Brazilian economy, aligning with existing scholarly literature.