Brazil $8 Billion Intervention No Match for Impeachment Joy

by Filipe Pacheco

A record $8 billion intervention by Brazil’s central bank couldn’t keep the real from climbing to the highest level since August amid bets that president Dilma Rousseff will be impeached.

The central bank sold 160,000 foreign-exchange reverse swaps in five different auctions Tuesday, moves that are equivalent to buying dollars in the futures market. It was the biggest sale on a single day since the contracts, which tend to weaken the real, were sold for the first time in 2005. The program was re-introduced last month after three years of efforts to support the currency.

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