After the record funding in 2020, the Brazilian savings account had the largest cash withdrawal in history in January. Brazilians withdrew BRL 18.153 billion more than they saved in savings, the Central Bank said on Thursday.
It was the worst result since the beginning of the historical series, which started in 1995. Until then, the largest monthly withdrawal had been BRL 12.356 billion, in January last year.
READ ALSO: The revenue of startups housed by Cubo, Itaú’s innovation hub, soars 1.500% in pandemic year
With the outbreak of the COVID-19 pandemic and its impact on the economy, however, savings started to have more money coming in than out.
Last year, savings raised BRL 166.31 billion in funds, the highest annual value in history. The payment of emergency aid by the Federal Government and the economic uncertainties because of the COVID-19 pandemic have encouraged people to save money in savings, even though this investment yields less than inflation.
READ ALSO: Debt refinancing is a risk for Brazil, says Institute of International Finance
According to the Central Bank, the first month of the year traditionally records more outflow of money from savings than inflows. This is due to the payment of taxes, expenses with school supplies and installments of Christmas and New Year’s expenses.