O central bank informed that as of this Thursday, September 29, operations will begin to roll over USD 15.2 billion in traditional currency swaps that expire at the beginning of November, totaling 304,120 contracts.
“The execution of this rollover provides for the realization of auctions traditional swap journals and will comprise the period necessary for all the stock maturing on 11/1/2022 to be renewed”, said Bacen in a press release published on its page at Internet.
“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 expiration date.”
The rollover will begin with the offer of up to 16,000 FX swap contracts distributed between February 1, 2023 and July 3, 2023.
The reception of proposals will take place between 11:30 am and 11:40 am on Thursday, with the following result.
Bacen has 100.337 billion dollars 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 a fees (currency coupon). In exchange, the BC receives the change in 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 of the dollar in relation to the real and liquidity to the businesses.
The placement of traditional swap contracts, therefore, works as an injection of dollars into the futures market.
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