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Brazil's cenbank sells 24 pct of swaps offered in 2nd auction
December 26, 2012 / 2:10 PM / 5 years ago

Brazil's cenbank sells 24 pct of swaps offered in 2nd auction

SAO PAULO, Dec 26 (Reuters) - Brazil’s central bank sold 24 percent of the currency swaps it offered in second auction on Wednesday, strengthening the country’s currency, the real.

The central bank said in a statement it had sold 9,500 contracts maturing on Feb. 1, 2013, of an offer of 40,000.

Earlier in the day the central bank sold 27,500 contracts, also maturing on Feb. 1, 2013 and out of an offer of 40,000. The currency swaps are derivatives that emulate the selling of dollars in the futures markets.

On Wednesday morning, the central bank conducted an auction to sell up to $2 billion on the spot market with repurchase agreements, which aims at providing liquidity to the foreign exchange market at year-end. Brazil’s currency, the real, gained shortly after the auction and was trading 1.6 percent stronger at 2.0456 reais per U.S. dollar.

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