Traders shrug off Brazilian controls
The central bank adapted three existing rules on capital and FX limits, effective July 2, in an attempt to reduce exposure to FX risks at local banks (see panel).
Trading activity initially indicated concerns that the central bank was targeting foreign investment and influence, with the US dollar briefly trading 50-60 pips above the June 8 close of 1.9594 against the real last Monday (June 11).
"The market was not expecting it, there was a flurry of activity due to fears that there was going to
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