Tombini Says Brazil Swap Program Is ‘Fully’ Meeting Its Goals

Brazil’s central bank president Alexandre Tombini said the the country’s currency swaps program is “fully” meeting its goals and doesn’t represent a threat to the foreign reserves.

“The volume offered corresponds to less than 30 percent of our international reserves and do not compromise those assets,” Tombini told reporters in Brasilia. “This situation doesn’t force us to revert those positions in the short and medium terms.”

The central bank adopted the swap program in August of 2013 to reduce currency volatility and protect investors, Tombini said after President Dilma Rousseff confirmed he would remain at the helm of the central bank for her second term. The program “meets the demand for protection in the economy,” he said.

The comments signal that the bank won’t increase the $100 billion it has in swaps, according to Jankiel Santos, chief economist at Banco Espirito Santo de Investimento SA.

“This means that there is only one direction, that is down,” Santos said in a phone interview from Sao Paulo.

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