December 26, 2012 / 1:10 PM / in 5 years

Brazil's central bank sells 69 pct of swaps offered at auction

SAO PAULO, Dec 26 (Reuters) - Brazil’s central bank on Wednesday sold 69 percent of the currency swaps it offered in an auction, strengthening the country’s currency, the real.

The central bank said in a statement it had sold 27,500 swaps maturing on Feb. 1, 2013, of an offer of 40,000 contracts. The currency swaps are derivatives that emulate the selling of dollars in the futures markets.

Earlier on Wednesday, the central bank conducted an auction to sell up to $2 billion on the spot market with repurchase agreements, which aims at providing liquidity to the foreign exchange market at year-end.

Brazil’s currency, the real, gained shortly after the auction and was trading 1.18 percent stronger at 2.054 reais per U.S. dollar.

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