Free Trial

MNI BRIEF: Brazil Says FX Action Only for Dysfunction -BCB Gov

(MNI) BRASILIA

The Brazilian Central Bank judges its criteria for intervention had not been met, despite the sharp depreciation of the real over the preceding week.

Central Bank of Brazil Governor Roberto Campos Neto said Wednesday the BCB will only intervene in foreign exchange markets when there is an "episode of liquidity or dysfunction" in the market.

"Intervention is a function of whether we think there is an episode of liquidity or dysfunction in the market, or sometimes there is a gap due to something that comes out that we believe was misinterpreted or misread. But we don't react to the fact that people are repricing our risk premium," he said in a meeting with XP investors in Washington.

Keep reading...Show less
138 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

Central Bank of Brazil Governor Roberto Campos Neto said Wednesday the BCB will only intervene in foreign exchange markets when there is an "episode of liquidity or dysfunction" in the market.

"Intervention is a function of whether we think there is an episode of liquidity or dysfunction in the market, or sometimes there is a gap due to something that comes out that we believe was misinterpreted or misread. But we don't react to the fact that people are repricing our risk premium," he said in a meeting with XP investors in Washington.

Keep reading...Show less