The Brazilian central bank will conduct dollar auctions totaling up to $4 billion through repurchase agreements on Wednesday and Thursday, seeking to rollover contracts expiring on April 2. Two auctions will be held each day, with maximum offerings of $2 billion.
On Tuesday, the Brazilian central bank declared its intention to conduct dollar auctions with a total offering of up to $4 billion. This will be accomplished through repurchase agreements scheduled for Wednesday and Thursday, with a limit of $2 billion available for auction each day. These actions are designed to roll over contracts that are set to expire on April 2.
The central bank recently performed a similar currency intervention last month, focusing on the rollover of expiring contracts. The upcoming auctions, two each day, are slated to take place from 10:30 a.m. to 10:35 a.m. local time. Furthermore, the repurchase agreement is scheduled for August 4 or September 3, contingent upon the respective auctions.
These strategic moves by the Brazilian central bank are indicative of proactive measures to manage currency stability and liquidity in the market, reflecting ongoing economic engagement. The auctions will allow for the continuation of vital contracts while providing support to financial markets.
In summary, the Brazilian central bank is set to conduct dollar auctions of up to $4 billion to rollover expiring contracts. With auctions occurring on consecutive days, the central bank emphasizes its commitment to maintaining currency stability. This effort is a continuation of prior interventions aimed at managing the economic landscape effectively.
Original Source: www.marketscreener.com
