Forgotten Brazil Bond Leads to First FX Intervention Since 2022
- Expiration of NTN-A instruments means a $3.7 billion outflow
- Central bank is placing $1 billion in swaps on Tuesday
The Central Bank of Brazil headquarters in Brasilia.
Photographer: Andressa Anholete/BloombergThis article is for subscribers only.
The expiration of an all-but-forgotten Brazil Treasury bond has pushed the nation’s central bank to step into currency markets for the first time in almost two years.
The monetary authority is selling $1 billion in swaps on Tuesday to prevent a volatility spike as so-called NTN-A bonds come due on April 15. The notes, whose nominal value is linked to the currency’s variation, were sold back in 1997 and never used again.