# Brazil central bank to continue FX intervention as long as it takes to calm market | Financial Post

> Brazil's central bank said it would keep intervening in the foreign exchange market in whatever size is needed to keep trading orderly. Its $3 billion spot auction on Monday tripled the size announced the previous Friday and followed nearly $10 billion in dollar swap auctions in recent weeks. The move followed a collapse in oil prices that drove sharp volatility across world markets.

- Date: 2020-03-09 · published 2020-03-09T12:00:00.000Z
- Category: macro · region Brazil · magnitude medium
- Page: https://feedsoft.ai/events/6408-brazil-central-bank-to-continue-fx-intervention-as-long-as-it-takes-to-calm
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md), [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md)

## Why it matters

A central bank commitment to unlimited intervention caps further real weakness, which lowers the dollar-denominated cost of Brazilian export commodities. The oil price shock is also a global demand and risk-sentiment factor for commodity prices.

## Read by commodity

- WTI: bearish ▼
- USDBRL: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDBRL | 2020-03-09 | 5 | +5.6% | 2.9 | The central bank's pledge to keep intervening, after the oil price collapse and nearly $10 billion in swap auctions in recent weeks, reflects the FX stress and sentiment driving the 5-day real depreciation. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2021-10-19 | [Brazil central bank intervenes in FX market rattled by new spending \| Financial Post](https://feedsoft.ai/events/44783-brazil-central-bank-intervenes-in-fx-market-rattled-by-new-spending-financial.md) | +1.4% | -0.4% |
| USDBRL | 2019-08-27 | [Brazil central bank to continue FX intervention on Wednesday as real nears record low - The Business Times](https://feedsoft.ai/events/57788-brazil-central-bank-to-continue-fx-intervention-on-wednesday-as-real-nears.md) | +0.5% | +0.5% |
| USDBRL | 2017-04-17 | [EMERGING MARKETS-Brazil real jumps on central bank intervention](https://feedsoft.ai/events/71706-emerging-markets-brazil-real-jumps-on-central-bank-intervention.md) | +0.1% | -0.8% |
| USDBRL | 2017-01-17 | [Brazil real strengthens 1 pct as central bank resumes intervention](https://feedsoft.ai/events/73168-brazil-real-strengthens-1-pct-as-central-bank-resumes-intervention.md) | -1.2% | -3.1% |
| USDBRL | 2022-02-22 | [Brazil central bank chief says higher interest rates, positive fiscal are supporting FX \| Financial Newsletter](https://feedsoft.ai/events/42914-brazil-central-bank-chief-says-higher-interest-rates-positive-fiscal-are.md) | +0.7% | -3.4% |
| WTI | 2020-07-23 | [Latam FX weakens, Brazil's real comes off one-month high \| Financial Post](https://feedsoft.ai/events/52312-latam-fx-weakens-brazil-s-real-comes-off-one-month-high-financial-post.md) | -1.7% | +2.5% |
| WTI | 2022-03-25 | [Thai baht, Asian FX gain as oil prices come off the boil \| Financial Post](https://feedsoft.ai/events/42509-thai-baht-asian-fx-gain-as-oil-prices-come-off-the-boil-financial-post.md) | -11.6% | -9.7% |
| WTI | 2020-06-24 | [C$ dips as pickup in coronavirus cases weighs on sentiment \| Financial Post](https://feedsoft.ai/events/52860-c-dips-as-pickup-in-coronavirus-cases-weighs-on-sentiment-financial-post.md) | -2.8% | +3.7% |

## Sources

- financialpost.com: https://financialpost.com/pmn/business-pmn/brazil-central-bank-to-continue-fx-intervention-as-long-as-it-takes-to-calm-market

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