The Brazilian central bank plans to auction up to $4 billion through dollar auctions with repurchase agreements on Wednesday and Thursday, aiming to roll over contracts expiring on April 2. Each day will see a maximum of $2 billion, with two auctions scheduled daily. This strategy follows a previous currency intervention.
The Brazilian central bank has announced plans to conduct dollar auctions totaling up to $4 billion, utilizing repurchase agreements. This initiative will occur on Wednesday and Thursday, with a maximum of $2 billion available for auction on each day. The objective of these auctions is to rollover contracts that are set to expire on April 2.
This move follows the central bank’s previous currency intervention, which also focused on the rollover of expiring contracts. The scheduled auctions will take place twice daily between 10:30 a.m. and 10:35 a.m. local time. The repurchase agreements related to these auctions will be executed on either August 4 or September 3, contingent upon the specifics of the auction.
In conclusion, the Brazilian central bank’s announcement to auction $4 billion in dollars through repurchase agreements is designed to manage expiring contracts effectively. By ensuring continued liquidity in the currency market, the central bank aims to stabilize the monetary environment. These actions reflect the central bank’s ongoing commitment to proactive financial management.
Original Source: www.marketscreener.com
