INSUBCONTINENT EXCLUSIVE:
The Brazilian currency market experienced a rollercoaster ride on Thursday, December 12, 2024
raise the benchmark Selic rate
The Monetary Policy Committee (Copom) increased the rate by 100 basis points to 12.25% per annum.This move aimed to combat inflation and
maintain the attractiveness of Brazilian assets to foreign investors
However, the initial optimism faded as the trading session progressed.By the end of the day, the US dollar had climbed to R$ 6.0072, marking
close.Brazilian Real Faces Turbulence as Dollar Surpasses R$ 6 Mark
The Dollar Index (DXY), which measures the greenback against a basket of major currencies, rose by approximately 0.26% to 106.354
The central bank conducted two dollar auctions with repurchase agreements, selling a total of $4 billion.These operations, however, had a
limited impact on exchange rates
foreign capital, they also risk slowing economic growth
The government must navigate these challenges while maintaining fiscal discipline and addressing political uncertainties.As Brazil moves
performance.Investors and policymakers will closely monitor how these factors evolve in the coming months
