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Brazil Scales Back Currency Support as Real Sinks to 12-Year Low

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Brazil’s central bank scaled back its support for the real, ending sales of new foreign-exchange swaps that had swelled the government’s liabilities.

Officials will stop the auctions at the end of this month, the central bank said in a statement Tuesday. The monetary authority will continue rolling over old contracts, which are equivalent to selling dollars in the futures market, depending on demand and may still hold auctions for dollar loans.