Brazil’s Year-End Dollar Bid Returns As Global Rates And New Taxes Test The Real

Key Points 1. Banco Central do Brasil sold $2 billion via “linha” auctions, briefly pulling USD/BRL below R$5.50, but the real still weakened. 2. Fed messaging and a Bank of Japan hike strengthened the global dollar and capped BRL relief. 3. New taxes on remittances and dividends are pulling flows forward and raising skepticism about […]