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Brazil to continue to prop up real

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(Globalpost/GlobalPost)

Brazil's Central Bank said Monday it will continue to prop up the real even after the national currency got a boost from Washington's decision to keep its vast stimulus policy unchanged.

"From our perspective, the program is adequate, is working well, so there is no news whatsoever from our side on this issue," Central Bank chief Alexandre Tombini told foreign correspondents.

In August, the bank announced a massive currency intervention involving daily sales of currency swaps and derivative contracts to boost the real and regain the confidence of markets.

The program involves $55 billion until the end of the year.

As of a few weeks ago, the Brazilian currency had lost 16 percent of its value this year, its lowest level in five years amid uncertainty over the US Federal Reserve's monetary policy.

Last week, however, the Federal Open Market Committee decided not to taper its $85-billion-a-month bond-buying program, unleashing a worldwide equities rally led by emerging markets.

After the Fed's announcement, the real recovered slightly and was Monday trading at 2.2 to the dollar.

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http://www.globalpost.com/dispatch/news/afp/130923/brazil-continue-prop-real