August 19, 2013 / 6:57 PM / 5 years ago

Brazil cenbank offers to sell dollars on spot market as real dives

RIO DE JANEIRO, Aug 19 (Reuters) - Brazil’s central bank on Monday offered to sell as much as $4 billion on the spot market with repurchase agreements, as part of a strategy to stem a currency rout that has added to inflation concerns.

It was the first time policymakers resorted to dollar sales on the spot market in about two months. Since then, the central bank had been intervening in the market with sales of traditional currency swaps, derivatives that mimic an injection of dollars in the futures market.

The bank said in a statement it will auction the dollars on Tuesday with repurchase dates set to Jan 2 and April 1. With the move, policymakers seek to boost dollar liquidity in the spot market without reducing the country’s foreign reserves.

The real trimmed losses after the announcement but remained 0.6 percent weaker at 2.4110 per dollar.

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