*Brazil’s central bank (BCB) has announced that it will hold an auction today (30 August) to sell up to US$1.5bn. The sale represents an effort by the BCB to get more dollars circulating in the international currency market, thereby addressing the falling value of the Brazilian real against the dollar. The value of the real on the dollar surpassed R$5.60 yesterday, marking the fourth consecutive day that the value of the real fell. Economists and pundits cited in national media reports have pointed to a range of factors behind the rise of the dollar and fall of the real. Domestic factors affecting market confidence in Brazil include long-running concerns over the fiscal situation of Brazil’s government led by President Luiz Inácio Lula da Silva as well as uncertainty over how the BCB will respond to persistently high inflation. Meanwhile, the value of the dollar rose after the US posted stronger-than-expected GDP growth figures.
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LatinNews Daily - 30 August 2024
In brief: Brazil’s central bank announces sale of US dollars
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