Wealth Manager - the site for professional investment managers

Register to get unlimited access to 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: bonds with Ian Spreadbury

Brewin's Gutteridge: bonds with Ian Spreadbury

This week Brewin Dolphin's research head chats to Fidelity's Ian Spreadbury about the recent behaviour of interest rates and credit spreads.

Play Can tech advances explain the UK productivity puzzle?

Can tech advances explain the UK productivity puzzle?

Much of the productivity puzzle of the last eight years may be explained by a failure to capture new tech

Brewin's Gutteridge: Yuan direction

Brewin's Gutteridge: Yuan direction

This week Brewin Dolphin's research head chats to Fidelity Asian Investment Directors Jenny Lee and Gary Monaghan about the big changes in China.

Your Business: Cover Star Club

Small is beautiful: wealth firms still see value in less rich

Small is beautiful: wealth firms still see value in less rich

Latest statistics from findawealthmanager.com show that there are many firms who still service smaller clients.

Wealth Manager on Twitter