{"id":22272,"date":"2011-07-11T13:35:00","date_gmt":"2011-07-11T17:35:00","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?guid=5f77ffa7feab5888f19e717025a82aa4"},"modified":"2011-07-11T13:35:00","modified_gmt":"2011-07-11T17:35:00","slug":"banco-central-do-brasil-announces-further-measures-to-cap-real-gains","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2011\/07\/11\/banco-central-do-brasil-announces-further-measures-to-cap-real-gains\/","title":{"rendered":"Banco Central Do Brasil Announces Further Measures to Cap Real Gains"},"content":{"rendered":"<p><span class=\"Apple-style-span\" style=\"font-family: Verdana, Geneva, sans-serif; font-size: 12px; line-height: 16px;\"><span class=\"Apple-style-span\" style=\"font-family: verdana, sans-serif;\"><span class=\"Apple-style-span\" style=\"line-height: 16px;\">The&nbsp;<a href=\"http:\/\/www.bcb.gov.br\/\" style=\"color: #3778cd; text-decoration: none;\">Banco Central Do Brasil<\/a><\/span>&nbsp;announced measures to discourage dollar shorting in order to cap a persistent rally of its currency, the Real. &nbsp;The Bank will require that banks with short US dollar positions hold 60% of the value of short positions greater than $1 billion in non-interest bearing deposits at the central bank. &nbsp;The Banco Central do Brasil had previously required banks to hold 60% of the value of short positions greater than $3 billion on deposit. &nbsp;The Brazilian Real has appreciated 20% against the US dollar over the past two years.<\/span><\/span><br \/><a name='more'><\/a><\/p>\n<div><span class=\"Apple-style-span\" style=\"font-family: verdana, sans-serif; font-size: 12px; line-height: 16px;\">Brazil&#8217;s central bank last increased the <\/span><span class=\"Apple-style-span\" style=\"font-family: verdana, sans-serif; font-size: 12px; line-height: 16px;\"><a href=\"http:\/\/www.centralbanknews.info\/2011\/06\/central-bank-of-brazil-raises-selic.html\">selic rate<\/a><\/span><span class=\"Apple-style-span\" style=\"font-family: verdana, sans-serif; font-size: 12px; line-height: 16px;\"> by 25 basis points to 12.25% in June this year. &nbsp;Brazil&#8217;s high interest rate is one of the factors keeping the Real strong as speculators chase the high interest rate differential. &nbsp;Brazil last reported an annual inflation rate of 6.55%, compared to the official inflation target of 4.50%. &nbsp;The Brazilian government is forecasting economic growth this year of 4.5-5%, compared to GDP growth of 7.5% during 2010. &nbsp;The Brazilian Real last traded around 1.56-1.58 against the US dollar.<\/span><\/div>\n<div><span class=\"Apple-style-span\" style=\"font-family: Verdana, Geneva, sans-serif; font-size: 12px; line-height: 16px;\"><span class=\"Apple-style-span\" style=\"font-family: verdana, sans-serif;\"><br \/><\/span><\/span><\/div>\n<div><span class=\"Apple-style-span\" style=\"font-family: Verdana, Geneva, sans-serif; font-size: 12px; line-height: 16px;\"><span class=\"Apple-style-span\" style=\"line-height: 16px;\"><a href=\"http:\/\/www.centralbanknews.info\/\" style=\"color: #3778cd; text-decoration: none;\"><span class=\"Apple-style-span\" style=\"font-family: verdana, sans-serif;\">www.CentralBankNews.info<\/span><\/a><\/span><\/span><\/div>\n<div class=\"blogger-post-footer\"><img width='1' height='1' src='https:\/\/blogger.googleusercontent.com\/tracker\/8290544642025682538-3379333199502501080?l=www.centralbanknews.info' alt='' \/><\/div>\n","protected":false},"excerpt":{"rendered":"<p>The&nbsp;Banco Central Do Brasil&nbsp;announced measures to discourage dollar shorting in order to cap a persistent rally of its currency, the Real. &nbsp;The Bank will require that banks with short US dollar positions hold 60% of the value of short po&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-22272","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/22272","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=22272"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/22272\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=22272"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=22272"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=22272"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}