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Brazil central bank to hold extra swap auctions to meet over-hedge demand

Business & Finance

2 Min Read

Sept 24 (Reuters) - Brazil’s central bank said on Friday it would hold additional twice weekly auctions of traditional currency swaps, starting Sept. 27, to address demand from banks dismantling their “over-hedge” position to protect against exchange rate fluctuations.

The auctions will be held on Mondays and Wednesdays. The central bank said in a statement that on Monday it would auction 14,000 traditional swap contracts, equivalent to $700 million, with maturities between June 1 and Sept. 1, 2022.

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