Brazil central bank sells all 20,000 currency swaps at auction

RIO DE JANEIRO, July 26 Fri Jul 26, 2013 9:55am EDT

Related Topics

RIO DE JANEIRO, July 26 (Reuters) - Brazil's central bank on Friday sold all of the 20,000 traditional currency swaps offered at an auction, concluding the rollover of similar contracts that expire next week.

With Friday's auction, the bank replaced all of the 114,300 swaps that expire on Aug. 1 with new contracts maturing in the beginning of December or January.

Traditional currency swaps are derivative contracts that provide investors with protection against a possible depreciation of the real. Still, the Brazilian currency remained 0.2 percent weaker at 2.2430 per U.S. dollar after the auction.