July 9, 2011 / 1:10 AM / 8 years ago

Brazil tightens limit on dollar short selling

BRASILIA, July 8 (Reuters) - Brazil’s central bank clamped down on short dollar positions late on Friday in its latest move to try to contain worrisome appreciation of the local currency that has taken the real BRBY to near 12-year highs.

The bank said in a statement it would impose reserve requirements of 60 percent of the value of local banks’ short positions in excess of the smaller of two figures: $1 billion or on the bank’s reference capital.

Previously, the calculation looked at short positions of up to $3 billion instead of $1 billion.

Banks would have five days to comply with the new rule.

The strength in the currency has worried exporters, who now find their goods more expensive to sell abroad. (Reporting by Luciana Lopez and Isabel Versiani; Editing by Peter Murphy and Carol Bishopric)

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