The dollar closed the session stable, quoted at R$5.05, after intervention by the Central Bank (BC) in the foreign exchange market.
The stability came following an announcement by the BC about holding an extra auction of foreign exchange swaps, which had an initial impact on the currency price, causing a drop. However, throughout the day, the US currency regained some of its strength.
The Central Bank sold US$1 billion in foreign exchange swap contracts, in an operation that aimed to meet demand generated by the redemption of the NTN-A3 bond, linked to the exchange rate and scheduled to mature on April 15. The NTN-A3 is a National Treasury bond that is no longer issued, but still circulates on the market.
The maturity in question corresponds to a total of R$ 18.534 billion, which is equivalent to approximately 3.7 billion dollars at the current exchange rate.
Financial market professionals consider that the BC’s actions, in addition to meeting this specific demand, may have also served to moderate a potential rise in the American currency.
José Faria Júnior, partner at Wagner Investimentos (WIA), explained that the NTN-A is a security linked to the performance of the dollar, created in 1997, and that the longest-running issue is now maturing. He highlighted that holders of these securities would need to buy dollars to undo hedge operations associated with these securities.
On the international scene, the dollar showed a slight drop in relation to other major currencies, losing strength after reaching a high five years earlier. This movement contributed to a certain relief in the prices of emerging country currencies, including the real.
Source: Infomoney
