DEFINITION of 'Sovereign Fund Of Brazil'
A sovereign wealth fund created by Brazil in 2008. The fund's objectives include providing support to projects of strategic interest to Brazil, helping Brazilian firms expand abroad and helping the economy absorb fluctuations in economic cycles.
BREAKING DOWN 'Sovereign Fund Of Brazil'
The Sovereign Fund of Brazil was created with an initial target of $20 billion. The impetus for its creation was Brazil's booming foreign currency reserves, which rose by $32 billion in 2009 to $239 billion. In January 2010, the Brazilian government said it would permit the Fund to buy U.S. dollars in the foreign-exchange market in a bid to stem the Brazilian real's rise.