SAO PAULO Nov 8 Brazil's central bank said on
Friday it will start rolling over next week currency swaps that
mature in December, a move that will likely provide some support
to a weakening real.
The bank said in a statement it will start renewing the
swaps on Tuesday. Details about the new contracts to be offered
will be released on Monday.
Brazilian policymakers have been regularly selling swaps as
part of a daily intervention program that provides investors
with a hedge against a possible depreciation of the real.
Speculation that the central bank could soon start rolling
over the $10.1 billion worth of swaps that expire on Dec. 2 was
growing among traders as the real slid to 2.3170
per dollar on Friday, its weakest level in two months.
Last month, as the real weakened, the central bank rolled
over about two-thirds of the $8.9 billion of swaps that expired
in the beginning of November.