Not sure why this pair is basically unsupported by the FX industry, probably something to do with banking regulations, but it's a free-floating currency like any other. It's been a stellar performer this year, I think the #1 YTD gainer amongst the G20. And the overnight rate of 8.75% can't be beaten in this low-rate environment. This pair should be right up there with the majors in terms of accessibility (it'll be right up there with the majors in terms of importance in 5-10 years, if you don't consider it there already).
Likewise perplexed why BOVESPA futures still aren't offered by any major broker. They were approved by the CFTC for US brokers back in August, get going already IB!
(it'll be right up there with the majors in terms of importance in 5-10 years, if you don't consider it there already).
Ignored
I would like to respectfully rescind this terrible prognostication of mine...
To update on why this pair is still nowhere to be found nearly 7 years later, the primary reason is b/c it's not a CLS-linked currency. Nor is it becoming CLS-linked even on the horizon. Until that day arrives, NDFs and futures will remain the only way to trade it. But good luck finding a reputable retail broker supporting either.
IB mentioned plans to offer BOVESPA as a trading venue years ago, but they seem to have given up on that endeavor.. Saxobank offers BOVESPA index futures, but they appear to have dropped support of the BRL contract..
There is some light liquidity on the CME BRL contract now (thankfully), enough for position trades, but not really ideal for intra-day trading.
