Brazil ups reserve requirement threshold for dollar short sales

SAO PAULO Tue Dec 18, 2012 6:01am EST

SAO PAULO Dec 18 (Reuters) - Brazil's central bank will raise the threshold for setting aside reserve requirements for short-selling the U.S. dollar to $3 billion, up from $1 billion previously, in a bid to prevent the real from weakening further.

The move takes effect Dec. 20, according to a statement published in the bank's Sisbacen newswire. The bank also changed the period of calculation of such requirements to the average of five business days, longer than the prior one day calculation.

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