Brazil digs into reserves again to prop up falling currency
BCB sells almost $13 billion of reserves as investors cast doubt on government’s fiscal position
The Central Bank of Brazil (BCB) on December 19 intervened once again in the foreign exchange market in a further attempt to prop up the currency.
The BCB has been engaging in FX interventions by selling dollars in spot auctions this week to prevent the real from depreciating further against the dollar. It conducted an auction of $1.6 billion on December 16, and two more – of $1.3 billion and $2 billion – the day after.
These moves managed to briefly stabilise the exchange rate. However, the real
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