São Paulo – The governor of the Brazilian Central Bank, Alexandre Tombini, has said this Friday (4th), in Lisbon, that the country’s Central Bank will continue holding daily auctions of dollars on the foreign exchange market up until the end of this year. According to Agência Brasil, Tombini made the statement at a meeting with governors of central banks in Portuguese language-speaking countries.
According to Tombini, the daily auction program has yielded good results, curbing the dollar’s hike against the Brazilian real. Last August 22nd, when the dollar sold for R$ 2.42 by the end of the day, the Central Bank announced that it would hold daily auctions of the US currency to slow down the currency’s hike.
The Central Bank’s program consists of selling US$ 500 million per day from Mondays through Thursdays, and US$ 1 billion on Fridays. The Central Bank has sold US$ 19 billion since the auctions started being held, on August 23rd. the dollar-to-real exchange rate has been dropping since. This Friday (4th), by the end of the trading day, the US dollar was selling for R$ 2.213.
At the meeting with central bank governors from other Portuguese-speaking countries, Tombini said the real is the currency that has appreciated the most since August, when the Central Bank started auctioning the currency. Prior to August, the Brazilian currency ranked among those that had depreciated the most as against the dollar in 2013.
*Translated by Gabriel Pomerancblum
