News Americas, BRASILIA, Brazil, Tues. July 12, 2011: Brazil’s real traded weaker Monday as the government tried to stem the rise of the currency against the U.S. dollar.
The real traded at 1.5801 to the dollar on Monday afternoon, compared with Friday’s close of 1.5615, according to Tullet Prebon PLC via FactSet Research Systems Inc.
It came after the central bank announced stricter reserve requirements designed to reduce bets against the dollar by Brazilian banks. Banks will now have to deposit 60 percent of the value of any short-dollar positions above $1 billion.
The real’s rise has become a local concern because it makes local manufacturers less competitive, and may contribute to the formation of real estate and other asset bubbles.
