Brazil’s central bank takes ‘hands off’ approach to FX, focuses on growth

Seven months into the presidency of Roberto Campos Neto, Brazil’s central bank has implemented a quiet revolution in its monetary policy, with the former trader showing a willingness to tolerate a weaker currency.

In selling international reserves for the first time in 10 years to meet demand for dollars, while slashing interest rates to new lows to revive growth, the blue water between monetary and exchange rate policy is becoming ever clearer, analysts say.

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