Brazil Currency Gains as Central Bank Announces Swap Rollovers

Brazil’s real gained after the central bank announced plans to roll over all of its foreign-exchange swap contracts due Oct. 1 to stem the currency’s slide.

The real appreciated 0.4 percent to 2.3713 per dollar at 5:08 p.m. in Sao Paulo, erasing earlier declines. Swap rates due in January fell one basis point, or 0.01 percentage point, to 9.21 percent.

The central bank said in a statement that it will roll over 135,300 currency swaps at auctions Sept. 16-18. The bank has said rollovers are in addition to the $60 billion intervention program announced last week to support the currency.

To contact the reporters on this story: Blake Schmidt in Sao Paulo at bschmidt16@bloomberg.net; Marisa Castellani in Sao Paulo at mcastellani7@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net

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