Brazil central bank announces rollover of $15.5 bln in swaps maturing in December
SAO PAULO, Oct 10 (Reuters) -Brazil's central bank said on Thursday it would hold auctions starting on Friday to roll over $15.5 billion in traditional currency swaps expiring on Dec. 2.
The central bank said in a statement that daily traditional swap auctions would be held as long as necessary for the expiring stock to be fully renewed.
In a traditional currency swap, the bond pays the buyer the change in the exchange rate plus an interest rate. In return, the central bank receives the variation in the Brazilian benchmark interest rate, the Selic.
The central bank usually seeks to provide currency hedging and maintain liquidity conditions for the market with its rolling policy.
Reporting by Andre Romani; Editing by Jamie Freed
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