# Brazil central bank intervenes in FX market rattled by new spending | Financial Post

> Brazil's central bank made its first spot-market intervention since March to support the real after it nearly hit a six-month low. The move followed reports of an expanded welfare program, with part of its cost placed outside the constitutional spending cap.

- Date: 2021-10-19 · published 2021-10-19T12:00:00.000Z
- Category: macro · region Brazil · magnitude low
- Page: https://feedsoft.ai/events/44783-brazil-central-bank-intervenes-in-fx-market-rattled-by-new-spending-financial
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md)

## Why it matters

Central bank support limits real weakness, which reduces the export price advantage for Brazilian grain and meal. Fiscal expansion also raises inflation and rate risk for Brazil's economy.

## Read by commodity

- USDBRL: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2020-03-09 | [Brazil central bank to continue FX intervention as long as it takes to calm market \| Financial Post](https://feedsoft.ai/events/6408-brazil-central-bank-to-continue-fx-intervention-as-long-as-it-takes-to-calm.md) | +2.7% | +14.6% |
| USDBRL | 2022-02-22 | [Brazil central bank chief says higher interest rates, positive fiscal are supporting FX \| Financial Newsletter](https://feedsoft.ai/events/42914-brazil-central-bank-chief-says-higher-interest-rates-positive-fiscal-are.md) | +0.7% | -3.4% |
| USDBRL | 2017-04-17 | [EMERGING MARKETS-Brazil real jumps on central bank intervention](https://feedsoft.ai/events/71706-emerging-markets-brazil-real-jumps-on-central-bank-intervention.md) | +0.1% | -0.8% |
| USDBRL | 2020-12-10 | [Brazil's real jumps after central bank hints at end of easing cycle \| Financial Post](https://feedsoft.ai/events/49851-brazil-s-real-jumps-after-central-bank-hints-at-end-of-easing-cycle-financial.md) | -0.4% | +6.4% |
| USDBRL | 2025-01-30 | [Brazil central bank hikes rates by 100 bps, confirms same in March](https://feedsoft.ai/events/26712-brazil-central-bank-hikes-rates-by-100-bps-confirms-same-in-march.md) | -1.4% | -0.9% |

## Sources

- financialpost.com: https://financialpost.com/pmn/business-pmn/brazil-central-bank-intervenes-in-fx-market-rattled-by-new-spending

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