Real Closes at R$5.54 per Dollar as Central Bank Sells Full US$2 Billion in FX Lines

Overview

• The dollar ended at R$5.544 on Dec. 26, up 0.16% on the day and 0.27% for the week, while the Ibovespa edged higher.
• The Banco Central sold the entire US$2 billion offered in FX-line auctions, lifting its outstanding stock to US$14.75 billion.
• Traders flagged Jair Bolsonaro’s letter endorsing Flávio Bolsonaro as a driver of early-session electoral risk perceptions.
• Seasonally thin liquidity after the holiday was cited for choppy trading and wider intraday swings in FX and other assets.
• Analysts’ 2025 dollar calls proved wide of the mark, with some above R$6 versus a R$5.27 low, while the latest Focus survey points to R$5.50 for end‑2026 and one economist sees scope for R$5.10–R$5.00 if political noise recedes.