# Brazil real slumps to three-month low as central bank intervenes selling $2bn - Markets - Business Recorder

> Brazil's real fell to a three-month low of 5.73 per dollar on Tuesday and closed at 5.6662, its weakest close since November 2020. The central bank sold more than $2 billion in spot FX on the day, and over $5 billion since the previous Thursday, without reversing the slide. Investors were worried about the government's fiscal position.

- Date: 2021-03-03 · published 2021-03-03T12:00:00.000Z
- Category: macro · region Brazil · magnitude medium
- Page: https://feedsoft.ai/events/12205-brazil-real-slumps-to-three-month-low-as-central-bank-intervenes-selling-2bn
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md)

## Why it matters

A weaker real makes Brazilian soybeans, corn and meal cheaper in dollar terms, which encourages farmers and exporters to sell and can pressure world feed grain and meal prices. Central bank intervention has limited effect when the driver is fiscal, so the currency weakness may persist.

## Read by commodity

- USDBRL: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDBRL | 2021-03-04 | 1 | -3.3% | -3.0 | Real hit a three-month low on fiscal worries despite heavy central bank dollar sales, which shows strong sentiment-driven selling pressure that plausibly carried into the March 4 move, though it is dated a day earlier and the exact size of the 3.34% move is not explained. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2019-11-26 | [EMERGING MARKETS-Brazilian c.bank intervenes as real slumps; Colombian peso drops on tax reform](https://feedsoft.ai/events/56346-emerging-markets-brazilian-c-bank-intervenes-as-real-slumps-colombian-peso.md) | -0.5% | -3.1% |
| USDBRL | 2020-03-04 | [Brazil central bank to intervene in FX swaps market on Thursday](https://feedsoft.ai/events/54310-brazil-central-bank-to-intervene-in-fx-swaps-market-on-thursday.md) | +4.1% | +15.5% |
| USDBRL | 2018-05-18 | [EMERGING MARKETS-Brazil real slumps despite intervention amid emerging market selloff](https://feedsoft.ai/events/9713-emerging-markets-brazil-real-slumps-despite-intervention-amid-emerging-market.md) | -1.8% | +1.2% |
| USDBRL | 2021-01-27 | [Latam FX sinks ahead of Fed; Chile central bank seen holding rates - Markets - Business Recorder](https://feedsoft.ai/events/49445-latam-fx-sinks-ahead-of-fed-chile-central-bank-seen-holding-rates-markets.md) | +0.0% | +1.1% |
| USDBRL | 2020-03-18 | [Brazil central bank wades into FX, bond markets but real slump accelerates \| Financial Post](https://feedsoft.ai/events/54309-brazil-central-bank-wades-into-fx-bond-markets-but-real-slump-accelerates.md) | +1.1% | +3.8% |

## Sources

- brecorder.com: https://www.brecorder.com/news/40069687

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