# Analysis: Exchange rate unlikely to mean trouble for Brazil’s Central Bank

> Brazil's real weakened sharply on Tuesday, June 14, 2022, closing at R$5.133 per dollar. The Central Bank's Monetary Policy Committee (Copom) was set to announce a new Selic target that Wednesday. Policymakers use the prior week's average exchange rate (R$4.8909) in their inflation projections, which limits the effect of the spike.

- Date: 2022-06-14 · published 2022-06-14T12:00:00.000Z
- Category: macro · region Brazil · magnitude low
- Page: https://feedsoft.ai/events/11313-analysis-exchange-rate-unlikely-to-mean-trouble-for-brazil-s-central-bank
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md)

## Why it matters

Because Copom's inflation forecast uses the prior week's average rate, the one-day currency move is unlikely to change the policy path. A weaker real raises the local-currency cost of imported inputs, which keeps feed-ingredient import costs elevated for Brazilian buyers.

## Read by commodity

- USDBRL: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2017-04-12 | [Brazilian central bank likely to cut key rate by 100 bps, says Commerzbank \| EconoTimes](https://feedsoft.ai/events/71708-brazilian-central-bank-likely-to-cut-key-rate-by-100-bps-says-commerzbank.md) | -1.5% | +1.2% |
| USDBRL | 2022-02-24 | [Analysis: War shuffles moves of central banks in Brazil, abroad](https://feedsoft.ai/events/42916-analysis-war-shuffles-moves-of-central-banks-in-brazil-abroad.md) | +2.7% | -3.4% |
| USDBRL | 2023-05-24 | [Lula’s Feud with Brazil’s Central Bank Raises Rates Dilemma to Global Stage](https://feedsoft.ai/events/36147-lula-s-feud-with-brazil-s-central-bank-raises-rates-dilemma-to-global-stage.md) | +3.1% | -3.6% |
| USDBRL | 2020-05-15 | [Brazil Exchange Rate May 2020 - FocusEconomics](https://feedsoft.ai/events/53337-brazil-exchange-rate-may-2020-focuseconomics.md) | -5.4% | -15.1% |
| USDBRL | 2026-10-01 | [Brazilian Real: Exchange rate seen weaker into year-end – Rabobank](https://feedsoft.ai/events/17671-brazilian-real-exchange-rate-seen-weaker-into-year-end-rabobank.md) | -3.5% | +4.1% |

## Sources

- valorinternational.globo.com: https://valorinternational.globo.com/economy/news/2022/06/14/analysis-exchange-rate-unlikely-to-mean-trouble-for-brazils-central-bank.ghtml

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.