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Brazil's central bank moves to halt currency devaluation
Last Updated(Beijing Time):2012-12-04 10:47

Brazilian Central Bank took actions Monday in a bid to stop fast depreciation of the country's currency against the U.S. dollar.

The dollar has been on the rise lately, appreciating 2.3 percent in the past week and 4.94 percent in November. In the first 11 months of 2012, the U.S. dollar appreciated 14 percent against the Brazilian real.

The exchange rate reached 2.13 reals to the dollar early Monday and, to prevent a further slide of the real, the central bank decided to make two swap auctions, totalling 2.08 billion dollars.

The measure led to a dollar-real exchange rate of 2.11 reals per dollar by early afternoon.

In January, the exchange rate was at much lower levels, having started the year at 1.86 reals per dollar.

Over the course of the year, the Brazilian government encouraged the appreciation of the U.S. dollar, because a lower real benefited Brazilian exports by making them more competitive on the international market.

Today's measure marks the third time the government has had to step in to halt the dollar's appreciation, which it did when the rate hit 2.12 reals to the dollar, indicating the government may be trying to establish a maximum value to the currency.

Source:Xinhua 
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