Brazil central bank rolls over most currency swaps expiring on Nov. 1
RIO DE JANEIRO
RIO DE JANEIRO Oct 30 (Reuters) - Brazil's central bank rolled over about two-thirds of the $8.9 billion worth of currency swaps that expire on November 1 after selling a sixth, and likely final batch, of longer-dated swaps on Wednesday.
These swaps are derivatives that offer investors protection against a possible depreciation of the real.
The central bank sold all of the 20,000 swaps it had offered in each of the six auctions it held since last week to renew the expiring maturities, a sign of investors' appetite for currency hedge.
The bank's decision to roll over most of the expiring swaps has helped support the real in the past few days. On Wednesday, the Brazilian currency traded 0.2 percent stronger at 2.1855 per dollar.
Brazil's central bank has been regularly auctioning currency swaps as part of a program of daily currency interventions designed to stabilize the country's foreign exchange market. (Reporting by Walter Brandimarte; Editing by Diane Craft)