Financial Times FT.com

Currency bets catch out Brazil’s Aracruz, Sadia

By Jonathan Wheatley in São Paulo

Published: March 27 2009 19:08 | Last updated: March 27 2009 19:08

Aracruz, one of Brazil’s biggest paper and pulp producers, announced on Friday a net loss of R$4.19bn ($1.8bn) in 2008 after bets on currency futures went badly wrong.

The group was the worst affected of several large Brazilian companies that bet on the continued appreciation of Brazil’s currency during 2008 before it underwent a sharp devaluation caused by the global economic crisis.

You have viewed your allowance of free articles. If you wish to view more, click the button below.

Read this