Brazil To Offer $1B Reverse FX Swaps
Brazil is planning to offer $1 billion of reverse currency swaps in the currency futures market.
Brazil is planning to offer $1 billion of reverse currency swaps in the currency futures market, The Wall Street Journal reports. The Brazilian central bank will offer 20,000 contracts and target three maturities. It will offer 3,000 contracts due April 1, 7,000 contracts due July 1 and 10,000 contracts due January 2012. The auction will be financed by the central bank and enable investors to swap foreign-exchange futures positions for positions linked to domestic interest rates. The central bank will offer to purchase 20,000 contracts in the auction, each worth $50,000.
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