Brazil cenbank says to roll over FX swaps maturing in May
SAO PAULO, April 3
SAO PAULO, April 3 (Reuters) - Brazil's central bank on Wednesday announced it will start rolling over forex swaps that mature early in May, providing investors with ample hedge against possible currency losses despite a recent appreciation of the real.
The bank will offer on Friday as many as 10,000 swaps, derivatives that emulate a sale of dollars in the futures market, to start rolling over the $8.7 billion worth of swaps that expire on May 2.
In March, the central bank rolled over only part of the $10.15 billion worth of currency swaps that expired at the beginning of April.
Analysts said the central bank may allow some of those swaps to expire if the real continues to strengthen. The Brazilian currency closed at 2.2815 per dollar on Thursday, 0.5 percent weaker on the day but 3.3 percent stronger so far this year. (Reporting by Walter Brandimarte; editing by Andrew Hay)