Brazil’s public debt rises 0.22% in July, exceeds BRL 9.2T

In July, Brazil's public debt increased by 0.22%, reaching BRL 9.28 trillion, according to data released by the National Treasury. The government's Annual Financing Plan, presented in January and revised on Wednesday, projects the public debt stock to reach between BRL 9.7 trillion and BRL 10.3 trillion by the end of 2026. The public debt buffer, a financial reserve utilized during market turbulence or large debt maturities, expanded for the fourth straight month, reaching BRL 1.37 trillion in July.

This reserve covers 7.81 months of public debt maturities. Throughout July, the Treasury issued BRL 198.14 billion in domestic public market fixed-income (DPMFi) securities, with BRL 124.11 billion in Selic-linked securities. Interest payments, totaling BRL 89.95 billion, prevented the debt from decreasing. The Treasury redeemed BRL 260.05 billion in securities, driven by the expiration of numerous fixed-rate securities, which typically occurs in the initial month of each quarter.

The external federal public debt (DPFe) decreased by 2.12% from BRL 347.71 billion in June to BRL 340.06 billion in July, largely due to a 1.92% decline in the US dollar against the Brazilian real.