Oct 15 (Reuters) - Brazil's central bank intervened four
times in the foreign exchange market on Wednesday, a day after
it further eased reserve requirements for banks in a bid to add
liquidity to the financial system.
Following is a chronology of the actions the central bank
has taken to confront the recent market turmoil:
Sept. 19: The central bank sells $500 million in dollar
repurchase agreements in two separate auctions, the first sale
of dollar repos since February 2003.
Sept. 24: The central bank raises the amount that banks can
deduct from additional reserve requirements to 300 million
reais from 100 million reais and postpones a planned increase
of reserve requirements on leasing firms. The measures free up
13.2 billion reais for lending.
Sept. 26: The bank sells $500 million in dollar repurchase
agreements.
Sept. 29: The bank sells $527 million in reverse currency
swaps, rolling over a small portion of similar paper coming due
on Oct. 1.
Oct. 2: The central bank allows banks to deduct from
reserve requirements the amount used to buy credit portfolios
from small or mid-sized banks in distress. The move potentially
frees up an additional 23.5 billion reais for lending.
Oct. 6: The bank offers dollar swap contracts for the first
time in more than two years, selling $1.47 billion worth.
Oct. 6: The government gives the central bank the authority
to acquire loan portfolios of small and mid-sized banks in
distress. It also allows the central bank to extend credit
lines in foreign currencies to local financial institutions.
Oct. 6: The central bank says it will buy an unspecified
amount of dollar-denominated bonds from Brazilian banks to
increase credit lines in dollars for exporters.
Oct. 7: The bank sells $700 million in dollar repurchase
agreements.
Oct. 7: The bank sells $1.36 billion in dollar swaps.
Oct. 8: The bank sells $1.3 billion in dollar swaps.
Oct. 8: The bank dips into its international reserves and
sells dollars on the spot foreign exchange market for the first
time in more than five years. It sells an unspecified amount of
dollars in three auctions.
Oct. 8: The central bank increases the amount that banks
can deduct from additional reserve requirements to 700 million
reais from 300 million reais and cuts the percentage of
additional reserve requirements that banks must deposit to 5
percent from 8 percent. The measures free up an additional 23.2
billion reais for lending.
Oct. 9: The bank sells $911 million in dollar swaps.
Oct. 9: The bank sells an unspecified amount of dollars on
the spot foreign exchange market in two auctions.
Oct. 10: The bank sells $589 million in dollar swaps.
Oct. 10: The bank sells an unspecified amount of dollars on
the spot foreign exchange market in three auctions.
Oct. 13: The bank sells $494.5 million in dollar swaps.
Oct. 13: The central bank temporarily scraps reserve
requirements on term and interbank deposits as well as
additional reserve requirements on demand and term deposits. It
also eases reserve requirements for leasing firms that buy
dollar repos and raises the amount banks can deduct from
additional reserve requirements to 1 billion reais from 700
million reais. The measures free up an additional 100 billion
reais for lending.
Oct. 14: The bank sells an unspecified amount of dollars on
the spot foreign exchange market in an auction.
Oct. 14: The bank sells $1.235 billion in dollar swaps.
Oct. 14: The central bank reduces reserve requirements on
demand deposits to 42 percent from 45 percent, freeing up an
additional 3.6 billion reais for lending.
Oct. 14: The National Monetary Council temporarily
increases the percentage of demand deposits that banks must
lend to the agricultural sector to 30 percent from 25 percent,
freeing up an additional 4.5 billion reais for loans.
Oct. 15: The central bank sells an unspecified amount of
dollars on the spot foreign exchange market in an auction.
Oct. 15: The bank sells $1.282 billion in dollar swaps.
Oct. 15: The bank sells a total of $1 billion in dollar
repurchase agreements in two auctions.
Oct. 15: The bank says it will offer $1 billion in dollar
repurchase agreements on Oct. 16.
($1=2.164 Brazilian reais)
(Reporting by Todd Benson; Editing by Tom Hals)
