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Brazilians withdraw record $3.3 bln from savings accounts in January

· 02/04/2021 13:23
Brazilians withdraw record $3.3 bln from savings accounts in January

- Brazilian savings accounts shrank by a record 18.2 billion reais ($3.3 billion) in January, central bank figures showed on Thursday, after the end of emergency government cash transfers forced consumers to dip into savings.

It was the first monthly net outflow since February last year, just before the onset of the COVID-19 pandemic, and the biggest for a single month since the central bank's series began in 1995.

Brazilians deposited a record net 166.3 billion reais into savings accounts last year. The COVID-19 pandemic initially hammered spending, then some consumers squirreled away part of the emergency government aid in the second half of the year.

But that support for up to 30 million families expired on Dec. 31, and the data for January show consumers have begun to eat into the record mountain of savings amassed last year.

The figure for January this year compares with a 12.4 billion reais net outflow in the same month last year, the central bank said.

($1 = 5.43 reais)

(Reporting by Jamie McGeever and Gabriel Ponte, Editing by Alexandra Hudson)

((jamie.mcgeever@thomsonreuters.com; +55 (0)11 97189 3169; Reuters Messaging: jamie.mcgeever.reuters.com@reuters.net))