The central bank announced on Thursday that it will begin daily auctions on Friday to roll over $15.1 billion in traditional currency swaps expiring on November 1, for a total of 302,008 contracts.
The BC informed that, as usual, the lots offered may be modified every day and that the accepted proposals may eventually be lower than the offer, depending on the conditions of the demand, without prejudice to the objective of a complete roll over of the expiry date.
In the traditional currency swap contract, the security pays the buyer the change in the exchange rate plus interest. In return, the CB receives the change in the Selic rate. The transaction is equivalent to injecting dollars into the futures market.
The first rollover operation for November contracts will take place from 11:30 to 11:40 this Friday. 12,000 contracts will be offered with expirations of 03/05/2025 and 08/01/2025.
Source: Terra
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