LatinNews Daily - 07 May 2026

*Brazil’s central bank (BCB) has held an auction of reverse swap operations by selling derivatives on the futures market, equivalent to the purchase of US$500m in the futures market. Bloomberg has highlighted that this is the first time in a decade that the BCB has purchased US dollars through reverse swap deals in the futures market. Media reports have framed this central bank intervention amid the context of recent currency volatility, with the US dollar’s value falling relative to the Brazilian real. According to Brazilian state-owned news agency Agência Brasil, the BCB’s purchase strengthened the value of the dollar yesterday. Market analysts cited in the press have suggested that the BCB is trying to take advantage of the relative strength of the real to buy US dollars and absorb excess dollars circulating in the market.