Brazil central bank launches $60 bln currency intervention program
SAO PAULO Aug 22 (Reuters) - Brazil's central bank on Thursday announced a currency intervention program that will inject at least $60 billion in the foreign exchange market by year-end, a bold move aimed at supporting the country's currency as it slips to near five-year lows.
The bank said in a statement it will offer, on Mondays through Thursdays, $500 million in currency swaps, derivative contracts designed to support the currency, the real. On Fridays, it will offer $1 billion on the spot market through repurchase agreements.
The program starts on Friday and runs until December, the central bank said, adding it may announce additional auctions if it sees fit.