# Brazil central bank wades into FX, bond markets but real slump accelerates | Financial Post

> Brazil's central bank sold $830 million in two rounds of spot FX intervention and announced a repurchase program for dollar-denominated sovereign bonds held by Brazilian banks. The real slumped more than 4% to as low as 5.2180 per dollar, and the Bovespa fell as much as 14.7% amid liquidity problems in rates and bond markets.

- Date: 2020-03-18 · published 2020-03-18T12:00:00.000Z
- Category: macro · region Brazil · magnitude medium
- Page: https://feedsoft.ai/events/54309-brazil-central-bank-wades-into-fx-bond-markets-but-real-slump-accelerates
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md), [Soybeans](https://feedsoft.ai/c/SOY.md), [Soybean Meal](https://feedsoft.ai/c/SBM.md)

## Why it matters

A weaker real makes Brazilian exports such as soybeans, corn and meal cheaper in dollar terms, which can add selling pressure on global feed prices. Brazil's currency stress and market rout also signal tighter financing conditions for the region's agricultural sector.

## Read by commodity

- SBM: bearish ▼
- SOY: bearish ▼
- USDBRL: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2020-03-18 | [Brazil central bank FX, bond intervention fails to prevent market rout](https://feedsoft.ai/events/6393-brazil-central-bank-fx-bond-intervention-fails-to-prevent-market-rout.md) | +1.1% | +3.8% |
| USDBRL | 2024-08-13 | [Brazil's central bank had no reason to intervene in FX amid 'accelerated weakening'](https://feedsoft.ai/events/11942-brazil-s-central-bank-had-no-reason-to-intervene-in-fx-amid-accelerated.md) | -1.8% | +2.6% |
| USDBRL | 2021-03-03 | [Brazil real slumps to three-month low as central bank intervenes selling $2bn - Markets - Business Recorder](https://feedsoft.ai/events/12205-brazil-real-slumps-to-three-month-low-as-central-bank-intervenes-selling-2bn.md) | +1.7% | +0.6% |
| USDBRL | 2021-01-21 | [Brazilian real drops as fiscal worries overshadow central bank optimism \| Financial Post](https://feedsoft.ai/events/49385-brazilian-real-drops-as-fiscal-worries-overshadow-central-bank-optimism.md) | +1.5% | +2.0% |
| USDBRL | 2022-08-16 | [Brazil's real slumps 1% as presidential campaigns begin \| Financial Post](https://feedsoft.ai/events/40232-brazil-s-real-slumps-1-as-presidential-campaigns-begin-financial-post.md) | +1.7% | +2.1% |
| SOY | 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) | -2.2% | -0.8% |
| SOY | 2023-01-20 | [Brazil's real set for 2% weekly loss on worries over c.bank independence \| Financial Post](https://feedsoft.ai/events/37979-brazil-s-real-set-for-2-weekly-loss-on-worries-over-c-bank-independence.md) | +0.6% | +0.8% |
| SOY | 2023-06-27 | [Brazil central bank minutes raise possibility of August rate cut \| Reuters](https://feedsoft.ai/events/35693-brazil-central-bank-minutes-raise-possibility-of-august-rate-cut-reuters.md) | +2.7% | -0.4% |

## Sources

- financialpost.com: https://financialpost.com/pmn/business-pmn/brazil-central-bank-wades-into-fx-bond-markets-but-real-slump-accelerates

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