# Brazil to increase FX intervention but cautious on bond buying - Business & Finance - Business Recorder

> Brazil's central bank president said the country is ready to sell foreign exchange reserves to keep intervening in the currency market if needed. Any bond market intervention would be much smaller. The real had lost about 30% of its value against the dollar this year.

- Date: 2020-05-31 · published 2020-05-31T12:00:00.000Z
- Category: policy · region Brazil · magnitude low
- Page: https://feedsoft.ai/events/7618-brazil-to-increase-fx-intervention-but-cautious-on-bond-buying-business-and
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md)

## Why it matters

FX intervention can slow the real's decline, which helps contain the local cost of dollar-priced feed and fertilizer imports. Limited bond buying means the central bank is not signaling a major shift in monetary support.

## Read by commodity

- USDBRL: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDBRL | 2020-06-08 | 5 | -9.1% | -4.2 | The central bank's readiness to sell FX reserves and intervene supports the real by reducing disorderly depreciation risk and boosting dollar supply. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2025-06-25 | [Brazil’s Central Bank intervention in FX market raises questions](https://feedsoft.ai/events/24424-brazil-s-central-bank-intervention-in-fx-market-raises-questions.md) | -0.7% | +0.9% |
| USDBRL | 2017-07-13 | [Ex-Brazil President Lula sentenced to nearly 10 years for corruption](https://feedsoft.ai/events/70170-ex-brazil-president-lula-sentenced-to-nearly-10-years-for-corruption.md) | -2.3% | -2.4% |
| USDBRL | 2024-10-31 | [Brazilian government reaches agreement on spending cuts](https://feedsoft.ai/events/28083-brazilian-government-reaches-agreement-on-spending-cuts.md) | -1.3% | +3.8% |
| USDBRL | 2024-07-03 | [Lula approves spending cuts to meet Brazil's fiscal framework, says minister \| Reuters](https://feedsoft.ai/events/9451-lula-approves-spending-cuts-to-meet-brazil-s-fiscal-framework-says-minister.md) | -4.8% | -0.2% |
| USDBRL | 2017-11-28 | [Softer Pension Proposal Leads to Brazilian Stock Slip \| Chief Investment Officer](https://feedsoft.ai/events/11658-softer-pension-proposal-leads-to-brazilian-stock-slip-chief-investment-officer.md) | +0.8% | +2.9% |

## Sources

- brecorder.com: https://www.brecorder.com/news/1000152

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