# Brazil central bank to intervene in FX swaps market on Thursday

> Brazil's central bank will auction up to $1 billion in foreign exchange swap contracts on Thursday, its sixth intervention in the swaps market in recent weeks. The real has slid about 12% this year to record lows, reaching 4.56 per dollar.

- Date: 2020-03-04 · published 2020-03-04T12:00:00.000Z
- Category: macro · region Brazil · magnitude low
- Page: https://feedsoft.ai/events/54310-brazil-central-bank-to-intervene-in-fx-swaps-market-on-thursday
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md), [Soybeans](https://feedsoft.ai/c/SOY.md), [Corn](https://feedsoft.ai/c/CORN.md)

## Why it matters

Currency intervention aims to slow the real's slide, which affects the competitiveness of Brazilian soybean and corn exports and therefore global feed pricing. Continued weakness in the real would tend to pressure dollar-denominated grain and meal prices lower.

## Read by commodity

- SOY: bearish ▼
- CORN: 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 | 2024-08-30 | [Brazil Real Swings on Fiscal Woes, Central Bank Interventions](https://feedsoft.ai/events/29017-brazil-real-swings-on-fiscal-woes-central-bank-interventions.md) | -0.8% | -3.6% |
| 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 | 2020-03-12 | [Brazil ups FX intervention, pledges to ease bond market strains](https://feedsoft.ai/events/6394-brazil-ups-fx-intervention-pledges-to-ease-bond-market-strains.md) | +9.2% | +10.4% |
| 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% |
| SOY | 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) | +7.6% | +2.2% |
| SOY | 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) | -2.4% | +4.9% |
| SOY | 2020-05-14 | [The Federal Reserve and U.S. Treasury Did Not Intervene in FX Markets During the First Quarter - FEDERAL RESERVE BANK of NEW YORK](https://feedsoft.ai/events/53331-the-federal-reserve-and-u-s-treasury-did-not-intervene-in-fx-markets-during-the.md) | +1.3% | +3.6% |

## Sources

- reuters.com: https://www.reuters.com/article/brazil-forex-cenbank/brazil-central-bank-to-intervene-in-fx-swaps-market-on-thursday-idUSAQN025H4R/

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