Brazil Central Bank To Sell $4B In Forex Swaps Thursday

Published: March 26, 2009

(Dow Jones)–The Brazilian Central Bank said it would offer $4 billion worth of foreign-exchange swap contracts at an auction scheduled for Thursday.

The bank will offer 80,000 contracts at the auction scheduled to take place between 1430 GMT and 1500 GMT (10:30 and 11 a.m. EDT). The contracts will carry two maturities: June 1 and April 1, 2010.

Swaps allow investors with Brazilian interest rate-linked bonds to exchange them for positions in dollar-linked paper, easing pressure on the real in the futures market.

On Wednesday, the real closed at BRL2.248 per dollar on the Brazilian Mercantile and Futures Exchange, or BM&F, compared to BRL2.242 on Tuesday.


Sponsored Links