The Market of Foreign Exchange Hedge in Brazil: Reactions of Financial Institutions to Interventions of the Central Bank
Between 1999 and 2002, Brazil's Central Bank sold expressive amounts of dollar indexed debt and foreign exchange swaps. This paper shows that in periods of high volatility of the exchange rate, first semester of 1999 and second semester of 2002, the Central Bank of Brazil increased the foreign exchange hedge, but the financial institutions used this to reduce their foreign exchange exposure. In contrast, increases in foreign hedge during periods of low volatility of the exchange rate were transferred to the productive sector.
|Date of creation:||15 Dec 2005|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://professores.ibmecrj.br/erg/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:ibr:dpaper:2005-13. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Márcio Laurini)The email address of this maintainer does not seem to be valid anymore. Please ask Márcio Laurini to update the entry or send us the correct address
If references are entirely missing, you can add them using this form.