ForeXistenZ › Central banks › BCB
Banco Central do Brasil (BCB)
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Guards the real and runs Pix, one of the world’s fastest-growing instant payment systems.
How the BCB moves the BRL
A central bank sets the interest rate on its currency. Traders compare that rate with the rates of other central banks; the wider the gap, the stronger the pull of money towards the higher-yielding currency. That is why the minutes before a BCB decision are among the most volatile of the month for the BRL. Book I and Book II of the ForeXistenZ trilogy show how to prepare for these days — and when to stay out.
Frequently asked
What does the Banco Central do Brasil do?
Guards the real and runs Pix, one of the world’s fastest-growing instant payment systems.
Where is the Banco Central do Brasil?
The Banco Central do Brasil (BCB) is in Brasília, Brazil.
Why do forex traders watch the BCB?
Interest rates are the price of a currency. When the BCB raises or cuts rates — or only hints at it — money moves into or out of the BRL, and BRL reacts within seconds.
Where are the BCB’s decisions published?
Official decisions, statements and the meeting calendar are published on https://www.bcb.gov.br/en.
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Other central banks
BOGBank of Ghana
Accra, Ghana — Ghana’s central bank — buying domestic gold to strengthen the cedi.
CBNCentral Bank of Nigeria
Abuja, Nigeria — Manages the naira for Africa’s most populous country.
FEDFederal Reserve System
Washington, D.C., United States — Sets US interest rates. Every Fed decision moves the dollar — the currency on one side of almost nine in ten FX trades.
BANXICOBanco de México
Mexico City, Mexico — Sets rates for the peso, the most traded currency of Latin America.
BOCBank of Canada
Ottawa, Canada — Steers the Canadian dollar — the loonie, closely linked to the price of oil.
SARBSouth African Reserve Bank
Pretoria, South Africa — Manages the rand, one of the most liquid emerging-market currencies.