Oct. 19 (Bloomberg) -- Brazil’s central bank will study market demand for swap rollover auctions one day after the real appreciated to a four-month high against the U.S. dollar.
The evaluations will begin Oct. 21 at 5:00 p.m. in order to assess market conditions for conducting foreign exchange “swap” auctions on Oct. 22, 23 and 24, the bank said in a statement posted on its website. Research is for demand for rollover of swap contracts expiring Nov. 1.
Brazil’s currency weakened to a 4 1/2-year low in August, prompting the central bank to start offering $3 billion in swap and credit line auctions per week. The $60 billion program started Aug. 23 and was scheduled to run through Dec. 31.
The real has appreciated 12.2 percent since the central bank announced the program, the best performance against the dollar among world currencies tracked by Bloomberg. The real closed at 2.1523 on Oct. 17, its strongest level since June 14 before depreciating 0.8 percent yesterday to 2.1700.
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