Brazilian federal public debt rises again, exceeding R$ 3,8 billion.

Wellton Máximo, reporter for Agência Brasil - The high volume of bond issuances caused the Federal Public Debt (DPF) to exceed the R$ 3,8 trillion mark. According to the National Treasury, the indicator closed last month at R$ 3,827 trillion, with an increase of 1,69% compared to October.

Brazil's domestic marketable public debt (in securities) rose 1,59%, from R$ 3,622 trillion to R$ 3,679 trillion. Last month, the Treasury issued R$ 34,49 billion more than it redeemed, mainly in fixed-rate securities and securities indexed to the Selic rate (the basic interest rate of the economy). The stock also increased due to the accrual of interest, which totaled R$ 23,20 billion.

The accrual of interest represents the gradual recognition of the rates that adjust the interest on public debt. These rates are incorporated monthly into the debt stock, according to the index used for each security.

The sharp rise in the dollar last month caused the External Public Debt to increase by 4,27% in November. The total debt rose from R$ 140,95 billion to R$ 146,96 billion, mainly driven by the 3,92% appreciation of the US currency last month.

Despite the increase in November, the Federal Public Debt (DPF) is close to the lower limit of the Treasury's forecasts. According to the Annual Financing Plan, released at the beginning of the year, the trend is for the DPF stock to end the year between R$ 3,78 trillion and R$ 3,98 trillion.

Through public debt, the government borrows resources from investors to honor its commitments. In return, it commits to repaying the money with some adjustment, which can be defined in advance, in the case of fixed-rate bonds, or follow the variation of the Selic rate, inflation, or the exchange rate.