O Mercado de Hedge Cambial no Brasil: Reação das Instituições Financeiras a Intervenções do Banco Central

Abstract

Between 1999 and 2002, Brazil´s Central Bank sold expressive amounts of dollar-denominated debt and foreign exchange swaps. This paper shows that in periods of high volatility of the exchange rate, first semester of 1999 and second semester of 2002, the Central Bank increased the foreign exchange hedge, which was used by the financial institutions to reduce their foreign exchange exposure. In contrast, increases in foreign exchange hedge during periods of low volatility of the exchange rate were transferred to the productive sector.