# Brazil central bank FX, bond intervention fails to prevent market rout

> Brazilian markets fell sharply on March 18, 2020, and the real slid almost 5% to as low as 5.2490 per dollar. Central bank foreign exchange and bond interventions did not stop the sell-off, and the currency's 2020 losses approached 25%.

- Date: 2020-03-18 · published 2020-03-18T12:00:00.000Z
- Category: macro · region Brazil · magnitude medium
- Page: https://feedsoft.ai/events/6393-brazil-central-bank-fx-bond-intervention-fails-to-prevent-market-rout
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md)

## Why it matters

A weaker real makes Brazilian exports cheaper in dollar terms, which can pressure dollar prices for Brazilian soy and corn and encourage farmers to sell more. The currency move is therefore bearish for those commodities.

## Read by commodity

- USDBRL: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDBRL | 2020-03-18 | 5 | +9.2% | 4.5 | On March 18 the real slid almost 5% to about 5.25 per dollar despite central bank intervention, which accounts for a large part of the 5-day move ending that date. |
| USDBRL | 2020-03-20 | 1 | -2.9% | -3.3 | The real's near-5% slide on March 18 despite central bank intervention shows the momentum and risk aversion that carried into the following sessions. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 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) | +4.1% | +15.5% |
| 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 | 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 | 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) | +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% |

## Sources

- reuters.com: https://www.reuters.com/article/brazil-markets-intervention/update-3-brazil-central-bank-wades-into-fx-bond-markets-but-real-slump-accelerates-idUSL1N2BB0U6/

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