Brazil cenbank mulling derivatives to curb FX volatility-Tombini

BRASILIA Tue May 21, 2013 3:03pm EDT

BRASILIA May 21 (Reuters) - Brazil's central bank could use derivatives to reduce volatility in the foreign exchange market, central bank President Alexandre Tombini said on Tuesday.

Speaking to lawmakers at a congressional committee, Tombini also said that while Brazil has taken advantage of the improvement in global liquidity, such conditions will probably reverse in coming years, affecting interest rates around the world.

At 3:52 p.m. local time (1452 ET), Brazil's currency, the real, traded at 2.0360 per U.S. dollar, 0.15 percent stronger than Monday's close.

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