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Brazil central bank calls 2nd swap auction; real trims losses
July 31, 2013 / 2:16 PM / 4 years ago

Brazil central bank calls 2nd swap auction; real trims losses

RIO DE JANEIRO, July 31 (Reuters) - Brazil’s central bank intervened in the foreign exchange market for a second time on Wednesday, stepping up efforts to halt a currency depreciation that has driven the real to an over four-year low.

The bank said in a statement it will auction as many as 30,000 traditional currency swaps maturing in March 2, 2014. It earlier sold 30,000 swaps expiring on Jan. 2, 2014.

Traditional currency swaps are derivative contracts designed to support the real.

The Brazilian currency traded at 2.2876 per U.S. dollar after the announcement of the second swap auction, 0.4 percent weaker for the day, after sliding as low as 2.3022, its weakest since April 1, 2009.

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