BRASILIA May 21 Brazil's central bank could use
derivatives to reduce volatility in the foreign exchange market,
central bank President Alexandre Tombini said on Tuesday.
Speaking to lawmakers at a congressional committee, Tombini
also said that while Brazil has taken advantage of the
improvement in global liquidity, such conditions will probably
reverse in coming years, affecting interest rates around the
At 3:52 p.m. local time (1452 ET), Brazil's currency, the
real, traded at 2.0360 per U.S. dollar, 0.15 percent
stronger than Monday's close.