LatinNews Daily - 15 June 2018

*Brazil’s central bank (BCB) has announced that starting from 18 June it will auction an additional US$10bn in the local currency markets as part of its efforts to contain the recent sharp devaluation of the real. The BCB’s announcement comes after the bank sold US$20bn in the futures market last week to try to contain the real which has depreciated 15% against the US dollar since the start of the year. But this failed to stem the fall of the real, which yesterday depreciated by a further 2.66% at traded at R$3.81/US$1. A BCB statement said that the bank’s objective is to continue ensuring the “proper functioning” of the currency markets and “provide liquidity”. To this end, the statement added that its dollar auction offer “could be adjusted up or down, depending on market conditions”.

End of preview - This article contains approximately 142 words.

Subscribers: Log in now to read the full article

Not a Subscriber?

Choose from one of the following options

• Subscribe
• Sign up for a one-time, 14-day trial