CORRECTED - CHRONOLOGY-Brazil cenbank actions to boost liquidity

Mon Oct 13, 2008 8:49pm EDT
 
[-] Text [+]

(Corrects amount in final paragraph to 100 billion reais from 147.1 billion reais)

Oct 13 (Reuters) - Brazil's central bank unveiled new measures on Monday easing reserve requirements for banks, the latest in a slew of moves aimed at adding 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.  Continued...

 

Editor's Choice

A selection of our best photos from the past 24 hours.  Slideshow 

Most Popular on Reuters

  • Articles
  • Video
Join the Reuters Consumer Insight Panel and help us get to know you better

Join the Reuters Consumer Insight Panel and help us get to know you better