# Brazil stocks post biggest fall since 1998, central bank intervenes twice in FX

> Brazil's central bank sold $3 billion of dollars in the spot market in the morning and a further $465 million in the afternoon. The real hit a new record low just short of 4.80 per dollar and lost about 2% on the day, though the intervention slowed its decline. It was the bank's first spot intervention since November and its largest dollar reserve sale since 2009.

- Date: 2020-03-09 · published 2020-03-09T12:00:00.000Z
- Category: macro · region Brazil · magnitude medium
- Page: https://feedsoft.ai/events/6407-brazil-stocks-post-biggest-fall-since-1998-central-bank-intervenes-twice-in-fx
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md)

## Why it matters

A weaker real raises the local cost of imported feed inputs and makes Brazilian soybean and corn exports cheaper in dollar terms, so the currency move feeds into export pricing. The intervention signals the bank will defend the currency, which may limit further depreciation.

## Read by commodity

- USDBRL: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDBRL | 2020-03-09 | 5 | +5.6% | 2.9 | On 2020-03-09 the real hit a record low near 4.80 per dollar amid the oil collapse and global selloff, with the central bank's large spot intervention, so this event falls inside the window and reflects the sharp depreciation. |

## 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 | 2020-10-31 | [Brazil's central bank intervenes twice in the week in support of the weakening Real — MercoPress](https://feedsoft.ai/events/50836-brazil-s-central-bank-intervenes-twice-in-the-week-in-support-of-the-weakening.md) | -5.2% | -9.0% |
| 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% |

## Sources

- reuters.com: https://www.reuters.com/article/us-brazil-markets/brazil-stocks-post-biggest-fall-since-1998-central-bank-intervenes-twice-in-fx-idUSKBN20W2XT/

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