The Brazilian central bank will auction up to $4 billion through dollar auctions with repurchase agreements on Wednesday and Thursday, each day allowing for a maximum of $2 billion. This action aims to roll over contracts set to expire on April 2, following a previous intervention last month.
On Tuesday, the Brazilian central bank announced plans to conduct dollar auctions involving repurchase agreements totaling up to $4 billion. These auctions are scheduled for Wednesday and Thursday, with each day permitting a maximum sale of $2 billion. The bank aims to roll over contracts that are set to expire on April 2 through this initiative.
This marks the central bank’s continuation of currency intervention efforts, with a previous intervention occurring last month for a similar purpose. The upcoming auctions will occur twice each day, specifically from 10:30 a.m. to 10:35 a.m. local time. The repurchase of these agreements is anticipated to take place on either August 4 or September 3, contingent on the outcome of the auctions.
In conclusion, the Brazilian central bank’s initiative to auction up to $4 billion in dollars highlights its ongoing strategies for managing currency stability. The scheduled auctions and repurchase agreements are strategically designed to roll over expiring contracts and signify continued intervention in the foreign exchange market.
Original Source: www.marketscreener.com
