In addition to raising basic interest rates by 1 percentage point, the Central Bank (BC) will intervene in the exchange rate for the first time in almost a month to hold back the rise in the dollar. The monetary authority will auction this Thursday (12) up to US$4 billion of international reserves with a repurchase commitment, when the money is bought back into reserves months later.
According to a statement issued early in the evening by the BC, the monetary authority will hold two auctions worth up to US$2 billion during the morning. Buyback operations will take place on February 4, 2025 for money sold in the first auction and on April 2, 2025 for money sold in the second auction.
The last time the BC intervened in the foreign exchange market was on November 13, when it also sold US$4 billion of international reserves. At the time, the auction also took place in the form of line auctions, as sales with repurchase commitments are called.
The last spot auction, in which the BC disposed of part of the international reserves without repurchasing the resources, took place on August 30th. At the time, the monetary authority sold US$1.5 billion.
Despite the instability of recent days, the North American currency closed with a significant drop this Wednesday (12).
The commercial dollar ended the day selling at R$5.968, down 1.3%, amid expectations of a rise in the Selic Rate (the economy’s basic interest rate) and concerns about the health of President Luiz Inácio Lula da Silva. This was the first time in two weeks that the price closed below R$6.
