Brazil central bank offers to roll over November currency swaps

RIO DE JANEIRO Mon Oct 21, 2013 5:48pm EDT

Related Topics

RIO DE JANEIRO Oct 21 (Reuters) - Brazil's central bank announced on Monday it will offer as many as 20,000 currency swaps to roll over similar contracts that expire early next month, a decision that will likely provide a boost to the real.

The new swaps, which expire at the beginning of July and August of 2014, will be offered at an auction on Tuesday around 2:30 p.m. (1630 GMT), the bank said in a statement.

Brazil's central bank has been regularly selling swaps as part of a daily intervention program that provides investors with a hedge against a possible depreciation of the real. About $8.9 billion of the contracts sold so far mature on Nov. 1.

Speculation the bank would not roll over part or all of the expiring swaps had been growing because the real recently strengthened past 2.2 per dollar to nearly four-month highs.

The real closed on Monday at 2.1812 per dollar, 0.3 percent weaker than Friday's close.

FILED UNDER: