Central Bank sells international reserves to curb the dollar
For the first time in almost three months, the Brazilian Central Bank is intervening in the exchange rate in an attempt to hold down the rise in the US dollar. On Wednesday (Nov. 13), the monetary authority should auction up to $4 billion of international reserves with a commitment to buy them back.
Two auctions of up to $2 billion will take place in the morning, a statement from yesterday reads. The repurchase operations will take place on April 2, 2025, for the money sold in the first auction, and on July 2, 2025, for the money sold in the second auction.
The last time the Central Bank intervened in the foreign exchange market was on August 30, when it sold $1.5 billion from its international reserves. On the occasion, the auction was a spot sale, with no commitment to buy back the money later.
The last time the Central Bank held repurchase agreement auctions was on January 20, 2023. A total of $2 billion was sold and repurchased in May and June of the same year.
Despite the instability of recent days, the US currency closed the day stable on Tuesday (12). The interbank rate closed the day at R$5.77, up just 0.01 percent.
