(Reuters) – Brazil’s central bank announced a currency-intervention program on Thursday that will provide $60 billion worth of cash and insurance to the foreign-exchange market by year-end, a move aimed at bolstering the country’s currency, the real, as it slips to near five-year lows against the dollar.
The bank said in a statement it will sell, on Mondays through Thursdays, $500 million worth of currency swaps, derivative contracts designed to provide investors with insurance against a weaker real. On Fridays, it will offer $1 billion on the spot market through repurchase agreements.
- Brazil Real Drops on Concern Intervention Won’t Work; Swaps Fall (bloomberg.com)
- Brazil Launches $60bn Currency Intervention Program (nalonmit.wordpress.com)
- Mish/ Mike Shedlock – Brazil Plans $60 Billion Currency Intervention Scheme; Indonesia Abandons Intervention, Adopts Other Measures – 26 August 2013 (lucas2012infos.wordpress.com)
- Reuters article: Brazil central bank launches $60 bln currency intervention program (forexlive.com)