BRASILIA Aug 8 Brazil's central bank said on
Friday it will increase the pace of the rollover of currency
swaps that expire in early September, a sign that it wants to
slow down the recent depreciation of the real.
The bank said it will increase to 10,000 the number of swaps
it will offer for rollover on Monday morning, up from the 8,000
contracts that it has been offering since the beginning of
The currency swaps are derivatives that provide protection
against losses in the real and mimic an injection of dollars in
the futures market. The bank has been selling swaps as part of a
daily intervention program that bolsters the real by reducing
demand for the American currency.
At Monday's rollover auction, the bank will offer contracts
that mature on May 4 and Aug. 3, 2015, a central bank statement
The bank has so far rolled over $1.977 billion, or one fifth
of the $10 billion in swaps that mature at the beginning of
September. At the new pace, it could roll over 95 percent of the
swaps due in early September if there are takers.
Last month, it offered as many as 7,000 contracts per day to
roll over some $9.5 billion worth of swaps that expired on Aug.
1, renewing about 70 percent of those contracts.
The regular sale of swaps has helped the real
gain more than 3 percent so far this year.
The central bank has succeeded in stabilizing the real
largely within 2.20 to 2.25 per dollar since April, though the
currency weakened past that level this month as fears of higher
U.S. interest rates increased globally.
The real closed on Friday at 2.2858 per dollar.
(Reporting by Anthony Boadle; Editing by Leslie Adler)