Reserves surpassed 100 billion escudos (907 million euros) for the first time in July and reached 103.4 billion escudos (937 million euros) in August.
This increase has been observed since September 2024, following the BCV’s adjustment of its monetary policy to align interest rates with European levels to prevent capital outflows abroad.
“The measures adopted by the BCV, since May 2023, aimed at normalizing its monetary policy to uphold the credibility of the fixed exchange rate regime to the euro, have resulted in a gradual reduction in the interest rate differential between domestic rates and those in the Eurozone, recently culminating in a positive ‘spread’ for BCV’s interest rates,” the BCV noted three months ago.
The latest figures, pertaining to August, confirm a “reversal in the trend of accumulation of net foreign assets by banks, while BCV’s net international reserves show an upward trajectory,” allowing for more than seven months of import coverage, according to central bank data.
