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BCB Step In To Curb Real Losses

BRAZIL
  • More volatility in USDBRL following action taken by the central bank to stem the slide in the Real. Earlier the central bank stepped in and offered $1b worth of FX swaps (20,000 contracts) to trim the underperformance, selling $715m of the $1bn of contracts offered.
  • Just now the central bank called another swaps auction, this time for 5,700 FX swap contracts causing another, albeit smaller, leg lower in USDBRL back to roughly flat on the day.

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