Brazil - central bank holds auction to buy dollars
Published May 30th, 2007
Brazil’s central bank said on Wednesday it will hold an auction to buy U.S. dollars on the spot foreign exchange market as part of an ongoing effort to build up international reserves.
The Brazilian currency, the real (BRBY: Quote, Profile, Research, was 0.31 percent stronger at 1.944 per dollar after the announcement. The real has traded below 2.0 per dollar since May 15, when it pierced that level for the first time in six years.
The bank has aggressively bought dollars over the past year to increase reserves and, indirectly, blunt the real’s gains. It has bought more than $33 billion on the spot market in 2007, nearly matching the $35.1 billion it bought in all of 2006.
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