Brazil
IDB to expand contingent swap scheme in Latin America
New mechanism gives regional development banks cheaper FX rates with hedges linked to credit events
US mutual funds’ passion for LatAm options undimmed in Q3
Counterparty Radar: Carry trade opportunities see managers’ positions increase tenfold in 2023
LatAm electronification – a market stuck in the past
Electronic pricing and execution of Latin American currencies is still lagging, say dealers
Hedge funds turn to exotics for EM carry trades
Traders eye dual digitals to cheapen up carry plays
Argentina and Brazil’s currency proposal met with scepticism
Experts say it is unclear whether governments want currency union or trade settlement mechanism
Corporates rush to hedge emerging market currency risks
Falling forward points have reduced cost of hedging further drops in Chinese renminbi
Brazil ramps up FX interventions to defend real
Governor Campos Neto says fall “is not justified by fundamentals”
Market turmoil causes traders to pull back to vanilla strategies
Emerging markets spreads tighten but liquidity still patchy
Seeing red over blue-chip swap in Argentina’s NDF fiasco
Emta protocol salve aside, peso settlement rate snafu is a warning for emerging market FX derivatives
More NDF changes could follow Argentine chaos
LatAm contracts may be tweaked to avoid repeat of contentious peso freeze
Brazil sells dollars as real falls to record low
Currency declines 11.3% against dollar since July, as central bank cuts interest rates by 150bp to new low of 5%
Brazilian central bank to sell dollars outright for first time since 2009
It remains committed to floating currency regime
SEB: tariffs won’t dampen China’s growing influence on global economy
But in the short run, threats will knock renminbi and other emerging market currencies
Currency losses at North American corporates rise to nearly $21 billion
Currency gyrations from geopolitical events continue to create headwinds for some businesses
LCH adds five currencies to non-deliverable swaps offering
Expansion in response to customer demand in Asia and Latin America
Monex Europe: China’s falling growth is biggest risk for EM currencies
But, following stimulus packages, the broker maintains bullish stance on renminbi
North American corporates lose $11bn on FX volatility
Almost six times as many companies reported currency headwinds in third quarter, FireApps analysis shows
ABN Amro: investor sentiment remains EM currencies’ Achilles heel
While EMFX valuations are attractive, their good fortune is contingent on other markets
Fed’s room to hike spells trouble for EMs – Scotiabank
Central banks’ interest rate tightening will make it hard for emerging markets with large deficits
Investors eye Mexico and Brazil amid hopes in regime change
They believe a projected weakening in the dollar will support emerging markets
European corporate FX losses triple
Currency losses at their highest since the first quarter of 2017, reports FiREapps