Brazilian Central Bank Announces $4 Billion Dollar Auctions with Repurchase Agreements

The Brazilian central bank plans to auction up to $4 billion through dollar sales on Wednesday and Thursday, aimed at rolling over expiring contracts. The auctions will occur in two sessions daily, and repurchases are scheduled for August 4 or September 3.

The Brazilian central bank has announced its intention to conduct dollar auctions totaling up to $4 billion via repurchase agreements on Wednesday and Thursday. This initiative will see the bank sell a maximum of $2 billion on each day. These transactions are designed to roll over contracts that are set to expire on April 2.

This currency intervention follows a similar action taken the previous month, also aimed at rolling over expiring contracts. Each day will feature two auctions, scheduled to occur between 10:30 a.m. and 10:35 a.m. local time. The associated repurchase is expected to be conducted on either August 4 or September 3, contingent upon the auction details.

In summary, the Brazilian central bank’s upcoming dollar auctions, amounting to $4 billion, are primarily designed to manage expiring contracts. Following prior interventions, these auctions will maintain support for the currency while facilitating necessary financial operations. The strategic execution of these auctions will provide clarity and reassurance to market participants regarding the central bank’s monetary policy.

Original Source: www.marketscreener.com