Abstract
Foreign Exchange (FX) rates have always been at the core of emerging countries crisis. FX derivatives have a heightened potential to allow hedging risks, mitigating the crisis, or to exacerbate its depth due to leveraged bets that turn sour. Brazil stands out among the emerging countries. FX derivatives are market suitable because the greater liquidity and depth of its organized segment in comparison with both the FX spot market and the FX over-the- counter market. Thus, the first dollar future contract has become the locus of formation of the Brazilian Real/USD exchange rate. This and other specific features of the FX derivatives in Brazil have reinforced their dual role (hedge and speculation) and their macroeconomic impacts. This study focuses on those impacts after the 2007/2008 international financial crisis, although a brief retrospective analysis, since the adoption of the Real Plan in 1994, is necessary for the understanding of the crucial role of FX derivatives in Brazil.
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