HALISTER1: BCB Auction Change Points to 3.10-3.20 BRL Range: Correparti

BCB Auction Change Points to 3.10-3.20 BRL Range: Correparti

(Bloomberg) -- BCB’s decision to cut FX reverse swaps offerings to 10,000 from 15,000 after USD/BRL surpassed 3.20 is a sign that the central bank seeks a 3.10-3.20 range for the pair, Ricardo Gomes da Silva, FX trading head at brokerage Correparti, says in an e-mailed note.
  • Decision has signaled a range, despite official discourse reinforcing a commitment to a floating FX regime
  • Given BCB decision, BRL likely will reverse part of recent days’ losses, Da Silva says
  • NOTE: BCB raised the volume to 15,000 from prior 10,000 on Aug. 11; decision was announced on August 10, when BRL closed at 3.1274/USD
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Ricardo Gomes Da Silva (Correparti Corretora De Cambio)

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