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Brazil cenbank indicates it will no longer roll over Sept FX swaps
August 28, 2014 / 11:26 PM / in 3 years

Brazil cenbank indicates it will no longer roll over Sept FX swaps

SAO PAULO, Aug 28 (Reuters) - Brazil’s central bank on Thursday did not yet announce an expected auction to roll over currency swaps that expire early in September, indicating it will stop renewing those contracts.

The sale of swaps is part of a central bank program of currency intervention designed to support the real, which has been gaining recently. The Brazilian currency closed on Thursday stronger than 2.24 per dollar for the first time in a month.

Brazilian policymakers usually announce swap rollovers at around 6:30 pm local time (2130 GMT) on the day prior to the auction, but so far the bank only announced its daily sale of 4,000 new swaps for Friday.

The central bank has already rolled over 88 percent of the $10.1 billion worth of swaps that expire in the beginning of September. (Reporting by Walter Brandimarte; Editing by David Gregorio)

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