Brazils central bank holds auction to buy dollars
Published August 9th, 2007
Brazil’s central bank will hold an auction on Thursday to buy U.S. dollars on the spot foreign exchange market as part of a continuing effort to build up international reserves.
The Brazilian currency, was nearly 2 percent weaker at 1.923 per dollar after the announcement. The real has traded below 2.0 per dollar since May 15, when it broke that level for the first time in six years.
The bank has bought dollars aggressively over the past year to increase reserves and, indirectly, blunt the real’s gains. So far in 2007, the bank has bought nearly $62 billion on the spot market, surpassing the $35.1 billion it bought in all of 2006.
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