Brazil Bank May Sell Reverse Swaps After Fed Easing, IG Says
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Brazil’s central bank may buy dollars in futures markets in a bid to avoid an excessive appreciation of the real after the Federal Reserve announced it will buy an additional $600 billion in Treasuries to stimulate the economy, Guilherme Barros, a columnist at IG news services, reported, without saying where he obtained the information.
The central bank may sell so-called reverse swaps or increase the amount of dollars purchased in the spot market to build the country’s reserves, Barros said. The government may also use its sovereign wealth fund to buy dollars in the spot market, Barros said.