RIO DE JANEIRO, BRAZIL - The Brazilian Central Bank began auctioning, on Wednesday, August 21, US$200 (R$800) million dollars from its currency reserves to stabilize the increasingly volatile exchange rate.
This type of operation had not taken place since February 2009, when the global economic crisis reached its peak due to the collapse of subprime lending in the U.S. housing market.
The new foreign exchange intervention strategy was announced last week, on August 14th. The Central Bank intends to sell up to US$ 3.845 billion by August 29th.
Last week, the Central Bank had announced that it . . .