Brazilian Central Bank to Conduct $4 Billion Dollar Auctions with Repurchase Agreement

The Brazilian Central Bank plans to auction up to $4 billion in dollars with repurchase agreements on Wednesday and Thursday, selling up to $2 billion each day to roll over expiring contracts.

The Brazilian Central Bank announced its intention to offer up to $4 billion through dollar auctions utilizing a repurchase agreement. This initiative will take place on Wednesday and Thursday, with a maximum of $2 billion available for sale each day. Furthermore, the central bank indicated that these transactions are intended to roll over contracts that are set to expire on April 2.

In summary, the Brazilian Central Bank’s decision to conduct dollar auctions with repurchase agreements aims to manage expiring contracts effectively. This strategic move underscores the bank’s proactive measures in the foreign exchange market, ensuring liquidity and stability.

Original Source: www.tradingview.com