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Brazil central bank plans to sell $4.53bn of FX swaps
RIO DE JANEIRO : Brazil 's central bank plans to sell $4.53 billion of currency swap contracts on Tuesday, part of effo
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RIO DE JANEIRO: Brazil's central bank plans to sell $4.53 billion of currency swap contracts on Tuesday, part of efforts to limit declines in the real against the US dollar.
The contracts are derivatives that mimic the sale of dollars in the spot market and allow investors to buy insurance, or hedge against gains in the value of the real.
The 90,525 contracts on offer, each with a nominal face value of $50,000, are being sold with maturities on Nov. 1, Jan. 2, April 2 and July 2, the central bank said in a statement.
Copyright Reuters, 2011
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