| RIO DE JANEIRO, June 27
RIO DE JANEIRO, June 27 Brazil's central bank
did not announce so far on Friday a usual auction to roll over
currency swaps that are set to expire early next month, a sign
it wants to slow recent gains in the real.
The bank has so far rolled over slightly more than 85
percent of the $10.1 billion worth of expiring currency swaps,
derivatives it has been regularly selling to investors who
demand protection against currency losses.
The regular sale of swaps has been part of a successful
central bank program of intervention in the foreign exchange
market, which has helped the real gain more than 7
percent so far this year.
Earlier this week, policymakers extended the intervention
program without changes until the end of the year, causing the
real to rally past the level of 2.2 per dollar for the first
time in more than two months.
A central bank spokesman declined to comment on whether or
not a rollover auction would take place on Monday, but the bank
consistently announces those auctions around 6:30 p.m. (2130
GMT) on the session prior to the sale.
If it kept its regular roll-over pace, the bank would
auction on Monday as many as 10,000 swaps worth $500 million,
closing the month with a roll-over rate a little above 90
Although the number of swaps that policymakers will allow to
expire in July is not that large, the bank's decision to cut
short the rollover sends a signal to the market about the
desired level of the real.
Over the past couple of months, the central bank had
succeeded in stabilizing the real largely within 2.20 to 2.25
per dollar. Many analysts believe that tight range should
prevail in the short term as it is considered a sweet spot for
both exporters and policymakers worried about inflation from
(Additional reporting by Tiago Pariz in São Paulo; Editing by