23 Mar 2015
Brazil’s real remains under pressure – TDS
FXStreet (Edinburgh) - The Brazilian currency would still remain under pressure this week following the sharp sell off vs. the greenback.
Key Quotes
"The coming week will also be important for Brazil as BCB Governor Tombini’s testimony before the Senate Economic Committee may give cues about the FX swap program”.
“The scheme ends in March and the BCB mentioned in January that it will reduce its liabilities (now at $114.3bn) by reducing the rollover ratio and stopping the daily offer of FX swaps”.
“Not much has been heard since then, as the BRL depreciated heavily vs. USD and other EMFX, partly anticipating this decision”.
“We think the pace of reduction will be very slow at best, or the reduction delayed, as the BRL remains under pressure, and pitfalls abound all around, starting with downside risks to Q4 GDP figures on Friday (cons: -0.7% Y/Y)”.
Key Quotes
"The coming week will also be important for Brazil as BCB Governor Tombini’s testimony before the Senate Economic Committee may give cues about the FX swap program”.
“The scheme ends in March and the BCB mentioned in January that it will reduce its liabilities (now at $114.3bn) by reducing the rollover ratio and stopping the daily offer of FX swaps”.
“Not much has been heard since then, as the BRL depreciated heavily vs. USD and other EMFX, partly anticipating this decision”.
“We think the pace of reduction will be very slow at best, or the reduction delayed, as the BRL remains under pressure, and pitfalls abound all around, starting with downside risks to Q4 GDP figures on Friday (cons: -0.7% Y/Y)”.