SAO PAULO, Aug 28 (Reuters) – Brazil’s central bank offered to buy U.S. dollars on the spot foreign exchange market on Friday as part of an ongoing effort to boost international reserves and soak up greenbacks pouring into the economy.

The bank has bought nearly $11 billion on the spot market since May 8, including $2.05 billion in the Aug. 1-21 period, to soak up dollar liquidity and prevent further appreciation of Brazil’s currency, the real.

The real BRBY traded 0.54 percent weaker at 1.876 per dollar shortly after the central bank’s announcement. (Reporting by Jose de Castro; Writing by Luciana Lopez; Editing by James Dalgleish)

With a difference in the exchange rate, this creates more buying opportunities for foreign investors looking to stretch the value of the dollar.  This is also an indication that top Brazilian financiers believe that the dollar will be strengthening.

A stronger dollar,  usually an indication that the dollars cheap lending rate, will not be that cheap anymore.  In other words, the interest rates will be going higher.  If your looking for to purchase a home, now is the time to lock in a 30 year fixed mortgage, at the lowest possibly interest rate you can, (without a balloon).   If your a rural land investor, look for acreage that you can subdivide, preferably with water,  purchasing with a land contract, locking in a fixed interest rate, to take advantage of possible future appreciation with the least amount of cash outlay for a long term investment.  Preferable with no pre payment penalties.