Why did the monetary authorities intervene

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Reference no: EM131082849

The Braziallian real dropped 1.5 percent to 3.5369 per dollar at 12:39 p.m. in Sao Paulo, after the monetary authority sold 88,500 reverse swaps out of 120,000 it offered on Friday, a move that’s equivalent to buying $4,425 billion in the futures market. The total amount of reverse swap contracts sold this week was of $24.7 billion.

Analysis: Why did the monetary authorities intervene and sell 88,500 reverse swaps? What impact does it have on Brazil's economy, more specifically the Braziallian real?

Reference no: EM131082849

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