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Brazil Central Bank Sees Currency Swap Volume as Unsustainable

  • Policy makers are said willing to use FX reserves if needed
  • Central bank has outstanding currency swaps over $63b
Ilan Goldfajn, president of the Central Bank of Brazil.

Ilan Goldfajn, president of the Central Bank of Brazil.

Photographer: Andrew Harrer/Bloomberg
Updated on

Brazil’s central bank cannot sustain its current campaign to combat currency volatility until general elections in October, according to a central bank official familiar with the board’s thinking. 

Maintaining the pace of currency swaps sales would mean the stock would exceed the amount Brazil has in international reserves, the person said. The central bank remains willing to intervene with international reserves if necessary, said the person, who requested to remain anonymous.