Argentina and Brazil are looking at ways to stimulate bilateral trade and investments but not eliminate their own currencies, according to Brazilian Finance Minister Fernando Haddad, who played down the idea of a single shared currency between the two Mercosur partners.
Brazil's central bank intervened in the foreign exchange market on Friday, selling dollars to ease heavy downward pressure on the real that had pushed the local currency closer to its all-time low against the dollar struck earlier this year.
Brazil’s central bank announced it would sell dollars outright in the spot currency market this month for the first time in over a decade, changing its regular market operations in response to rising demand for liquidity.
Brazil’s Real turned 25 years on Monday, July first. It’s already the longest circulating currency in the contemporary history of Brazil, having achieved this feat without fanfare in 2018 when it surpassed the cruzeiro.
Brazil stocks were lower after the close on Thursday, as losses in the real estate, industrial and financial sectors sectors led shares lower. At the close in Sao Paulo, the Bovespa index lost 0.01%.
Major Latin American currencies fell against the dollar on Thursday as global trade tensions strengthened the greenback and political uncertainty in Brazil and Argentina. Latin America's largest economy heads into a presidential election in two months time and in Argentina a major corruption scandal is unfolding.
Brazil's central government registered a primary budget deficit of 154.255 billion reais (US$49.40 billion) in 2016, meeting its target but recording a third consecutive annual deficit that reflects the dire state of the country's finances. In December, the country posted a primary deficit of 60.124 billion reais (US$19.25 billion).
The Brazilian Real weakened further on Friday after interim President Michel Temer showed concern over currency strength, while stocks edged lower following a heavy batch of quarterly results including state controlled oil company Petrobras.
Brazilian markets weakened on Monday after the acting lower house speaker in Brazil's Congress annulled an impeachment vote, though losses were pared as investors bet the move would delay rather than prevent leftist President Dilma Rousseff's removal from office.
Brazilian share prices surged on Thursday to close 6.6% higher, a seven-year record, after fresh setbacks to populist President Dilma Rousseff raised the prospect of her being driven from power.