The Brazilian central bank will conduct dollar auctions worth up to $4 billion on April 2, aimed at rolling over expiring contracts. Two auctions will occur each day, with repurchase agreements following in August or September.
The Central Bank of Brazil announced its intention to conduct dollar auctions totaling up to $4 billion on Wednesday and Thursday. These auctions will feature a maximum sale of $2 billion each day. The purpose of these transactions is to roll over contracts that are set to expire on April 2.
This recent currency intervention follows a similar move made by the Bank last month, which also focused on rolling over contracts. The upcoming auctions will occur twice daily, taking place between 10:30 a.m. and 10:35 a.m. local time. The repurchase agreements related to these auctions are slated for either August 4 or September 3, depending on the outcomes of the auctions.
In summary, the Brazilian central bank is making a decisive move to manage currency stability through planned dollar auctions aimed at rolling over expiring contracts. By facilitating these transactions across two days, the Central Bank aims to reinforce its monetary policy and provide liquidity.
Original Source: www.marketscreener.com
