HALISTER1: BRL May Gain Further With Change in Government: Fibra

BRL May Gain Further With Change in Government: Fibra

(Bloomberg) -- BRL may reach 3.25/3.35 if a new government emerges with an orthodox economic team, Cristiano Oliveira, chief-economist at Banco Fibra, says in a phone interview.
  • Brazil currency could have already reached these levels if BCB was not intervening with reverse swaps auctions
    • BCB has already offered large amount of swaps; it doesn’t have unlimited capacity to intervene, Oliveira says
    • Country’s 5-Y CDS may drop to slightly below 300 points with political shift, helping BRL advance
    • Oliveira forecasts BRL will average 3.54/USD in 2016; could close the year at 3.70
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Cristiano Oliveira (Banco Fibra SA)

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