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The Central Bank of Brazil sold $2 billion in foreign exchange markets on September 23, its first FX intervention since December 2021. The real remains up about 6% against the dollar this year despite the sale, which did not stop the dollar appreciating that day.
Central bank dollar sales aim to smooth real volatility, which affects Brazilian export competitiveness and the pricing of Brazilian soy and meal in dollar terms. A stronger real tends to make Brazilian commodities pricier for foreign buyers.
centralbanking.comBen MarguliesSep 26, 2022After 92 past neutral macro events, Brazilian Real (BRL per USD) moved a median +0.4% over 5 sessions (58% higher; middle half -0.7% to +1.4%), and +0.4% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
