3 Big Emerging Market Central Banks Made Moves To Bolster Their Currencies

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People run away from huge waves crashing onto San Sebastian's seafront in Spain.

As the Emerging Markets watch their currencies tumble and theirs stock markets tank, central banks are stepping up.

Here are three headlines out of the EMs in the last 12 hours:

The Reserve Bank Of India Sells Dollars To Oil Companies: In its effort to prop up its collapsing rupee, the RBI said it will enter into USD-INR swaps with state-owned oil-marketing companies.

"The RBI will meet the entire daily dollar requirement of three public sector oil-marketing companies through a sell/buy USD-INR swap for a fixed tenor, thereby removing the largest source of dollar demand from the market," noted Morgan Stanley's Hans Redeker.

The Brazilian Central Bank Raises Rates: Late Wednesday, the BCB raised its benchmark interest rate by 50 basis points to 9.00%. In the past four meetings, the BCB has raised this rate by a total of 175 basis points.

"Contrary to our ongoing view, the passthrough inflation pressure due to currency depreciation – although mostly built into our inflation forecasting model – could necessitate a further hike through Q4 and Q1 next year," said Societe Generale's Dev Ashish. "This would particularly be the case if the currency remains at depreciated levels for a long enough period of time."

Bank Indonesia Raises Rates: Thursday morning, BI raised its benchmark interest rate 50 basis points to 7.0%.

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