Brazil's central bank will double the amount of currency swaps it plans to auction to roll over expiring maturities after the real weakened sharply against the dollar on Monday. The bank said in a statement that on Tuesday, it will offer up to 10,000 swaps, which are derivatives that let investors hedge against currency losses, maturing on April 1 and July 1 of 2015.
The offer is part of the bank's strategy to roll over $10.1 billion worth of swaps that mature early next month. On Monday, the market snapped up all 5,000 currency swaps the bank offered to roll over the maturing swaps, plus 4,000 new contracts that were sold as part of the bank's daily forex intervention program. Still, the real weakened more than 1.5 percent to 2.2765 per dollar as investors feared the central may soon slow down the pace of intervention in the foreign exchange market.
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