The central bank of Brazil has reduced the dollar short positions in the foreign exchange market, The Wall Street Journal reports. Brazilian banks will be required to deposit 60% of the value of their positions above $1 billion without any remuneration.

Banks have to adjust their positions in five days. Lenders had about $14.7 billion in bets against the dollar at the end of June 2011. With the move the central bank is seeking to slow currency flows into Brazil.

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