Brasília – The Brazilian Central Bank said this Friday (22) that it will continue to auction swap contracts – an operation tantamount to selling dollars on the futures market – throughout next week. The auctions are intended to add liquidity to foreign exchange markets, thereby preventing volatility in US dollar prices relative to the real, Brazil’s domestic currency.
“The Central Bank reaffirms that it does not see why currency swaps cannot considerably exceed maximum auctioned volumes from the past,” a statement from the monetary authority reads. Besides swap contracts, the Bank also said it will auction USD 3 billion under repurchase contracts on Monday (25).
This Friday, despite an additional swap auction designed to keep prices steady, the dollar closed up 0.53% to BRL 3.7831.
Translated by Gabriel Pomerancblum
