Brazilian markets rebound as central bank intervenes to halt currency selloff
Date
12/24/2024 7:39:31 AM
(MENAFN) Brazilian markets rebounded at the conclusion of the week as the central bank took unprecedented measures to halt a currency selloff that was spreading throughout the country's markets.
The real rose as much as 1.4 percent on Friday, briefly recovering weekly losses, after officials intervened again with a spot sale and a credit line auction for USD7 billion.
Brazil's dollar bonds outperformed emerging markets on Friday, as the country's five-year credit default swaps declined.
The reprieve comes after the central bank intervened nearly every day for the past week to accommodate an increase in demand for US dollars.
It sold $8 billion in back-to-back spot auctions on Thursday alone, marking the largest daily selling of greenbacks since 1999.
They've spent approximately USD17 billion on spot sales so far. Speaking to journalists on Friday, Finance Minister Fernando Haddad said Brazil "needs to correct" the currency decline and intervene when markets fail, but he stressed that the central bank is not looking to preserve a set level for the real, but rather to create equilibrium.
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