How to surround code by curly braces in IntelliJ IDEA?

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Just configure Smart Keys as follow:
IDE Settings > Editor > General > Smart Keys > Surround selection on typing quote or brace.

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From the IntelliJ built-in help:

If this check box is selected, the selected text on typing a quote,
double-quote or brace, will be surrounded with these characters.

If this check box is not selected, then the typed quotes, double-quotes
or braces will replace the selection.

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