November 8, 2013 / 11:16 PM / in 4 years

Brazil central bank steps up currency intervention as real slides

SAO PAULO, Nov 8 (Reuters) - Brazil’s central bank said on Friday it will start rolling over next week currency swaps that mature in December, a move that will likely provide some support to a weakening real.

The bank said in a statement it will start renewing the swaps on Tuesday. Details about the new contracts to be offered will be released on Monday.

Brazilian policymakers have been regularly selling swaps as part of a daily intervention program that provides investors with a hedge against a possible depreciation of the real.

Speculation that the central bank could soon start rolling over the $10.1 billion worth of swaps that expire on Dec. 2 was growing among traders as the real slid to 2.3170 per dollar on Friday, its weakest level in two months.

Last month, as the real weakened, the central bank rolled over about two-thirds of the $8.9 billion of swaps that expired in the beginning of November.

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