Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Brazil moves to curb real's slide and boosts currency intervention to $60bn

Brazil moves to curb real's slide and boosts currency intervention to $60bn

Brazil's central bank has moved to halt the decline in its currency and will today begin rolling out a $60 billion intervention programme.

In a statement issued last night, Brazil's central bank said it had decided to use currency swaps and loans to help curb the real's slide, and from today it will begin weekly auctions of $1 billion of dollar loans.

It will also offer the equivalent of $500 million of foreign exchange swaps each day on Mondays, Tuesdays, Wednesdays and Thursdays.   The programme will finish at the end of December and sees Brazil broaden its $45 billion strategy announced earlier this year.

Investors have been exiting emerging markets over fears about the Federal Reserve's tapering plan, though Brazil's real has fared particularly badly.

A number of emerging market currencies also succumbed to the rout in May, and although governments are making moves in the right direction, analysts have hesitated to call a near-term end to the slide.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Brewin's Gutteridge: the opportunities in UK challenger banks

Brewin's Gutteridge: the opportunities in UK challenger banks

In this week's podcast, Brewin Dolphin's Ben Gutteridge and Guy Foster, discuss opportunities in the global financials sector with Aptus' Johnny De La Hey.

Play Charles Tan on Woodford & hidden trust income gems

Charles Tan on Woodford & hidden trust income gems

Cantor Fitzgerald investment company analyst Charles Tan discusses Woodford Patient Capital and some of the income trusts slipping under the radar.  

Brewin's Foster: the world’s most unconventional monetary policies

Brewin's Foster: the world’s most unconventional monetary policies

In this week's podcast, Guy Foster asks why the world’s biggest economies are pursuing some of the world’s most unconventional monetary policies. 

Your Business: Cover Star Club

Profile: how Close Brothers gave power back to the regions

Profile: how Close Brothers gave power back to the regions

Almost a year into the role, Close Brothers Asset Management head of wealth management Andy Cumming has highlighted three keys areas of focus

Wealth Manager on Twitter