# Brazil ups FX intervention, pledges to ease bond market strains

> Brazil's central bank increased dollar sales to support the real, which weakened past 5.00 per dollar for the first time. The bank also pledged measures to ease strains in the bond market.

- Date: 2020-03-12 · published 2020-03-12T12:00:00.000Z
- Category: macro · region Brazil · magnitude medium
- Page: https://feedsoft.ai/events/6394-brazil-ups-fx-intervention-pledges-to-ease-bond-market-strains
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md)

## Why it matters

Intervention limits the real's fall but cannot fully offset global risk-off flows, so Brazilian export prices in dollar terms stay soft. This keeps pressure on Brazilian soy and corn prices.

## 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 12 the real broke past 5.00 per dollar for the first time despite stepped-up dollar sales, which started the weakening within the 5-day window. |
| USDBRL | 2020-03-12 | 1 | +3.7% | 5.1 | The real weakened past 5.00 per dollar despite increased central bank dollar sales, showing selling pressure outweighed intervention, with bond-market strains adding to stress. |
| USDBRL | 2020-03-16 | 1 | +4.6% | 5.1 | The real broke past 5.00 per dollar on March 12 despite increased central bank dollar sales, showing the depreciation momentum and weak intervention efficacy that preceded the March 16 jump. |

## 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 | 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 | 2018-05-18 | [EMERGING MARKETS-Brazil real slumps despite intervention amid emerging market selloff](https://feedsoft.ai/events/9713-emerging-markets-brazil-real-slumps-despite-intervention-amid-emerging-market.md) | -1.8% | +1.2% |
| 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 | 2016-11-11 | [Brazil real extends slump despite increased intervention](https://feedsoft.ai/events/5466-brazil-real-extends-slump-despite-increased-intervention.md) | +0.7% | -0.4% |

## Sources

- reuters.com: https://www.reuters.com/article/brazil-forex/update-1-brazil-central-bank-accepts-no-bids-in-1-bln-spot-fx-auction-idUSL1N2B51I3/

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