Brazil central bank indicates it will no longer roll over May FX swaps
SAO PAULO, April 24
SAO PAULO, April 24 (Reuters) - Brazil's central bank did not announce so far on Thursday an expected auction to roll over currency swaps that expire early next month, indicating it will stop renewing those contracts.
If confirmed, the move could weaken the real on Friday. The Brazilian currency closed Thursday at 2.2148 per dollar, 0.46 percent weaker on the day.
Brazilian policymakers usually announce swap rollovers at around 6:30 pm local time (2130 GMT) on the day prior to the auction, but so far the bank only announced its daily sale of 4,000 new swaps for Friday.
A central bank spokesman did not confirm whether a roll-over auction would take place on Friday and declined to make further comments.
The central bank has already rolled over 74 percent of the $8.7 billion worth of swaps that expire in the beginning of May. Last month, it renewed 75 percent of the swaps that expired in the beginning of April. (Reporting by Tiago Pariz, writing by Walter Brandimarte; Editing by Diane Craft)
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