On Mar 31th, Brazil's central bank announced that the RMB had overtaken the euro to become the country's second largest international reserve currency.
According to the International Reserve Management Report released on the official website of the Central bank of Brazil on the same day, the RMB appeared in the list of its international reserve currencies for the first time in 2019. By the end of 2022, the RMB accounted for 5.37% of Brazil's international reserves, surpassing the euro's 4.74%.
For now, the U.S. dollar still dominates Brazil's international reserves, accounting for 80.42%, according to the report. Brazil's total international reserves declined in 2022 from the previous year due to factors such as the US Federal Reserve's interest rate hike and the appreciation of the US dollar. At the same time, the composition of the international reserve portfolio of the Central Bank of Brazil has not changed significantly, and it still insists on seeking diversified strategic allocation.