Dealing with the Central Bank

A huge some of money, $ 322 million, up 73% over the previous three months, which was U.S. Without hesitation JPMorgan Chase explained all about the problem. $ 186 million as a short-term capital. The real has appreciated 26% since then against the dollar. A clear making it difficult to export and the domestic currency appreciates. a OESI allow excessive real appreciation, exporters will be damaged, and therefore so is the use Brasilia , and that 25% of domestic production is for export, and Brazil with a real valued, less competitive in the international market. The Bovespa has been the market that has risen, in dollars worldwide, according Mantega, a The attracted well-meaning and those who want to make a quick profit, the speculators. The latter do not want to avenge . And he spoke of possible future measures and the role of the Central Bank of Brazil: a The central bank will continue buying the excess dollars and we can even think of other measures to mitigate something that is almost inevitable, which is the growing interest Brazilian real.

There is also speculation that it could dip into sovereign wealth fund to prop up the dollar, if the effect of 2% of the IOF has no effect. A market operator who preferred anonymity, told OGlobo the market on Tuesday reacted emotionally and now collecting the tax from 2% to foreign capital is not a Ounce seven cabstand bug. He added that Tuesday’s big sellers are the big makers today (Wednesday), including Credit Suisse, operating entity known by foreign capital in the country.

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