Brazil’s Real Could Reach BRL 3.20/USD in Short Term: Quantitas
(Bloomberg) -- (Machine translation provided by Google and reviewed by Bloomberg editors.)
- The appreciation movement of emerging currencies apparently lost some strength, while external risks with Trump and the advance of plea bargains and Carwash domestically would justify that the real moved towards a slight devaluation, says João Souza Fernandes, economist at Quantitas Gestão de Recursos, in a telephone interview.
- Stress scenario risk caused by some of Donald Trump’s attitude is still low, but higher than previously
- Internally, “we have a framework that points to the correct direction of things, with the progress of the reforms, inflation dismantling, BC having comfortable space to lower interest rates”
- Central Bank has left “empty space” lately, since the intervention to roll swap contracts that expire in February
- “We would not be surprised if BC decreases swap stocks”
- Quantitas projects the dollar rate at 3.40 reais at the end of 2017
- NOTE: The last time BC intervened in the market with rollover swaps was on 30/1, finalizing rollover of the contracts that expired in February
Alert:
HALISTER1Source: BFW (Bloomberg First Word)
People Donald Trump (United States of America)
Joao Souza Fernandes (Quantitas Gestao de Recursos SA)
Topics Criminal Practice & Procedure
To de-activate this alert, click
hereUUID: 7947283