Brazilian Real Devalues Further Despite Central Bank Intervention

Last Friday, in order to counter volatility in the foreign exchange market, the BCB announced it would auction US$3 billion of the country’s international reserves this week.

By Lise Alves, Senior Contributing Reporter

SÃO PAULO, BRAZIL – Not even the auctions announced by Brazil’s Central Bank (BCB) on Friday night, after markets had closed, managed to hold the US currency’s appreciation in relation to the Brazilian real at the start of this week.

The US dollar closed on Monday, May 20th, at R$4.105/US$1, with a slight increase of 0.07 percent. The exchange rate is the highest value for the North American currency in eight months.

Nonetheless, some economists saw the monetary authority’s plan as a relief. "At the margin . . .

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