Brazil central bank sells $911 mln of forex swaps
SAO PAULO, June 18 (Reuters) - Brazil's central bank sold about $911.5 million in currency swap contracts on Thursday, rolling over a similar batch of paper coming due next month.
The bank sold 18,900 of 35,110 swap contracts on offer, extending maturities coming due on July 1. It sold contracts maturing on Oct. 1, 2009, July 1, 2010 and Jan. 3, 2011.
Brazil's currency, the real (BRBY: Quote, Profile, Research), was trading 0.1 percent stronger at 1.96 per U.S. dollar shortly after the sale.
The currency swaps are linked to short-term interest rates and can help prevent extreme swings in the exchange rate by offsetting dollar inflows to the spot market. (Reporting by Jose de Castro; Writing by Elzio Barreto; Editing by James Dalgleish)
© Thomson Reuters 2009 All rights reserved
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