Brazil has plenty of room to sell more FX reserves

The scale of capital outflows in March was surprising, and that the bank increased its FX intervention when it was
20 May, 2020
  • The scale of capital outflows in March was surprising, and that the bank increased its FX intervention when it was apparent the Brazilian real was decoupling from other emerging currencies.

BRASILIA: Brazil's central bank has plenty of room to sell foreign exchange reserves and may increase its currency market intervention if it deems it necessary, bank president Roberto Campos Neto said on Wednesday.

Speaking in a live online event hosted by infrastructure and industry umbrella group Abdib, Campos Neto said the scale of capital outflows in March was surprising, and that the bank increased its FX intervention when it was apparent the Brazilian real was decoupling from other emerging currencies.

 

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