BC starts rolling US$ 15.6 billion in currency swaps on this 5th

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The Central Bank will start from this Thursday (18) to carry out rollover auctions of foreign exchange swap contracts maturing on October 3, 2022, which total US$ 15.6 billion, or 311,260 contracts, the municipality informed this Wednesday. -fair.

The BC will offer between 11:30 am and 11:40 am (GMT) up to 15,000 traditional foreign exchange swap contracts, in a batch distributed between the expiration dates of February 1, 2023 and June 1, 2023.

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“The execution of this rollover provides for the holding of daily traditional swap auctions and will comprise the period necessary for all the stock maturing on 10/3/2022 to be renewed,” the Central Bank said in a press release published on its website.

“The BC may change the lot offered each day, or even accept proposals in an amount lower than the offer, according to the demand conditions for the instrument, without prejudice to the objective of full rollover of the maturity”, he added.

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The autarchy has US$ 100.337 billion in stock of traditional foreign exchange swap contracts on the market.

The swap is a derivative that allows exchange of rates or profitability of financial assets. In the case of a traditional foreign exchange swap, the security pays the buyer the variation in the exchange rate plus an interest rate (exchange coupon). In exchange, the BC receives the variation of the Selic rate.

The BC’s objective with this instrument is to avoid a dysfunctional movement in the exchange market, providing exchange hedge –protection against excessive variations in the dollar against the real– and liquidity for businesses. The placement of traditional swap contracts, therefore, works as an injection of dollars into the futures market.

Source: CNN Brasil

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