SAO PAULO May 22 Foreign investors' demand for
currency swaps under Brazil's central bank intervention program
has decreased slightly, central bank president Alexandre Tombini
said on Thursday.
"We have seen demand cooling down recently. Swaps continue
to be channeled through non-financial companies, but foreign
investors have pared back slightly (their demand)," Tombini said
at an event in Sao Paulo.
The currency swaps provide hedges against currency losses.
The central bank started its daily intervention program in the
foreign exchange market in August to stem a sharp drop in the
Brazilian real, but slowed its pace this year.
Tombini noted that the intervention program has helped
reduce volatility in Brazil's markets, and reiterated that the
central bank has about $380 billion in currency reserves that
help reduce Brazil's vulnerability to foreign shocks.
Volatility has also decreased recently possibly because of
expectations for another round of monetary easing in Europe,
(Reporting by Aluisio Alves; Writing by Silvio Cascione)