Central Bank of Brazil to hold dollar auctions on Friday

Brazilian monetary authority will sell USD 3 billion from Brazilian international reserves. Goal is to restrain dollar hike.

Agência Brasil

Brasília – In order to restrain the exchange market volatility, this Friday the Central Bank of Brazil (BC) will auction USD 3 billion of its international reserves with a commitment to buy the money some months from now. The monetary authority has not done this kind of operation since the end of February.

The auctions will occur in two phases, from 12:15 to 12:20pm and from 12:35 to 12:40pm. This will be the eighth auction of this kind this year. In 2019, the Central Bank of Brazil injected USD 7.925 billion of its international reserves into the Brazilian market.

Over the last few days, the US dollar has faced strong fluctuations within a scenario of international economy instabilities and Brazilian domestic tensions over the negotiations on the Social Security reform. Yesterday (26), commercial dollar ended the day with 0.24% hike, sold for BRL 3.867. Exchange value, however, ended the day over BRL 3.90 last Friday (22).

Translated by Guilherme Miranda

Antonio Cruz/Agência Brasil

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