Central Bank Increases Use of International Reserves to Intervene in Exchange Rate

Until early this week, Brazil held US$388 billion in international reserves, which act as insurance for the country at times of external crises. Reserves will be reduced to US$372.56 billion by the end of September, with the US$11.6 billion to be sold.

RIO DE JANEIRO, BRAZIL - The Central Bank (CB) announced on Friday, August 23rd, that it will extend its strategy after beginning to use the dollars from international reserves to intervene in the exchange rate.

Throughout September, the monetary authority is to exchange US$11.6 billion in swap contracts (selling dollars in the futures market) in circulation in the market for resources from foreign reserves.

The CB has been selling up to . . .

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