◂ Event Timeline

Feb 26, 2021MACROBrazil

Brazil intervenes in FX markets to arrest real's fall

Brazil's central bank intervened in foreign exchange markets for the first time this year, selling $1.5 billion in two auctions as the real hit four-month lows. USD/BRL rose to 5.5387, the highest since November 6.

WHY IT MATTERS

Central bank FX sales slow the real's decline and can temporarily make Brazilian exports less attractive in dollar terms, though rising US yields are a stronger pull on the currency.

AFFECTSBrazilian Real (BRL per USD)◆

SOURCE
octaafrica.netFeb 26, 2021

Price reaction & history

Brazilian Real (BRL per USD)◆neutralSO FAR1d +1.5%5d +1.4%20d +2.6%

After 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.

Sep 26, 2023EMERGING MARKETS-Brazil's real steady after inflation data, Hungary trims interest rates+2.3%
Feb 14, 2020Brazil's FX intervention may give respite - NYK Daily+1.2%
Sep 26, 2022Brazil makes first FX intervention of the year - Central Banking+3.1%
Jul 1, 2021Latam FX fall on virus worries; Brazil's real down 1% | Financial Post+4.5%
Nov 21, 2019EMERGING MARKETS-Latam FX muted after mixed signals on trade; Brazil stocks gain+1.5%

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.

Brazilian Real (BRL per USD) USDBRL · GP ▸

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