Banco Central sells $50,000 swap contracts as Lula-Flávio vote dispute intensifies in Brazil polls
New polling data highlights a tight second-round race between Luiz Inácio Lula da Silva and Flávio Bolsonaro, causing the dollar to drop against the real. The Central Bank executed a 50,000 contract swap sale on Tuesday.
The Real deprecied against the US dollar on Tuesday as fresh polling data highlighted a fierce contest between presidential candidates Luiz Inácio Lula da Silva and Flávio Bolsonaro. The upcoming Meio/Ideia survey, which will be released on September 9, plans to interview 1,500 voters by phone between September 4 and 7. The questionnaire targets specific campaign issues, including the end of the '6x1' tax scale and Federal Police investigations involving figures linked to major candidates. Questions specifically reference messages related to former banker Daniel Vorcaro and Minister Alexandre de Moraes. Participants will be asked how these events might influence their voting decisions. The survey also inquires whether political probes should be disclosed before or after election day.
Market reaction was immediate. At 9:04, the dollar spot rate fell 0.35% to R$ 5.113 against the real. The October futures contract declined 0.26% to R$ 5.140 on the B3 exchange. Earlier Friday, the dollar closed higher by 0.50% at R$ 5.1296. At 11:30, Brazil's Central Bank conducted an auction selling 50,000 swap contracts to roll over positions expiring on October 1.
