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Fasdal: Banco Central do Brasil talks tough to save the real
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The Brazilian real has seen its biggest rally in seven years after the head of Brazil’s central bank said he was willing to use ‘all instruments’ including international reserves to ensure that the currency and the interest-rate markets function properly.
In this update on the situation in Brazil, Saxo Bank’s Simon Fasdal looks at how the verbal intervention has impacted stocks and bonds and whether it changes anything in the outlook for big businesses in the Latin American country.
The real has been trading is at its weakest point against the US dollar. Fasdal has said this could have serious implications on corporate debt issued in USD from companies like Petrobras and the telecoms giant, Oi.