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Finance Minister Guido Mantega’s failure to jaw bone foreign investors with threats of usd purchases and slow a 4-month REAL rally has investors betting $14 billion that the REAL will grow in value. Mantega vowed in Sept.that Brasil would “not lose this game,” saying the government might join the central bank in buying dollars to shore up exports. The central bank bought $5.9 billion usd in the first 12 days of September, the most in 11 months.
One analyst observes that “The search for yield is still in place.” Another observes that “Brazil has billions of reais to buy dollars. But the world has trillions of dollars to invest.”
