Brazil Currency Flow Posts Largest Weekly Outflow of 2026, Pressuring FX

Brazil's currency flow turned sharply negative at US$ 7.511 billion for the week of Aug 31-Sep 4, the largest weekly outflow this year and nearly double the previous high. The Central Bank's 'casadão' intervention—selling spot dollars while buying futures—aims to curb the deterioration in the 'casado' spread, but the scale of outflows suggests persistent capital flight and FX volatility.