Bigger Brazilian Repatriation Helps Real Outperform: Analysts
Source: BFW (Bloomberg First Word)
People
Matheus Gallina (Quantitas Gestao de Recursos SA)
Mauricio Oreng (Banco Rabobank International Brasil SA)
Michel Temer (Federative Republic of Brazil)
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UUID: 7947283
(Bloomberg) -- BRL outperformance reflects expectations of larger inflows after central bank yesterday extended time for market to register FX transactions with the bank by four hours.
Alert: HALISTER1- Taxes and fines generated by repatriation reaches BRL40.1b, Brazil tax agency says; on Oct. 24, volume was BRL 33.1b
- Extended time for transactions means BCB prepared for a greater flow, Matheus Gallina, FI trader at Quantitas, says in a phone interview
- While repatriation flow may be temporary, it helps BRL to outperform; main reason behind currency gains have been optimism about Temer government reforms
- BCB is unlikely to intervene to influence BRL levels, Gallina says; “even after BRL recently rose to near 3.10 from 3.30/USD, BCB kept its daily auctions volume unchanged”
- Market expectation is for flows generated by repatriation; advances in reforms agenda also helps, Mauricio Oreng, senior strategist for Brazil at Rabobank, says
- NOTE: Brazilians with money abroad have until Oct 31 to join the repatriation program, which permits the legalization of the money after taxes and fines payment
Source: BFW (Bloomberg First Word)
People
Matheus Gallina (Quantitas Gestao de Recursos SA)
Mauricio Oreng (Banco Rabobank International Brasil SA)
Michel Temer (Federative Republic of Brazil)
To de-activate this alert, click here
UUID: 7947283