Brazil goes for diversification

Brazil's reserves have increased dramatically over the last 12-18 months. What are the reasons for this?

Brazil adopted a floating exchange rate regime in January 1999. The exchange rate is determined by the market and the central bank has intervened only to correct liquidity and volatility problems, as well as building up international reserves. Brazil has increased its reserves in order to get the necessary strength to defend against external crisis and to improve the way it is seen in interna