December 12, 2005
Brazil's central bank continued with its series of currency swap contract a
Brazil's central bank continued with its series of currency swap contract auctions to absorb excess dollars from the market. On Friday, in its eleventh auction since resuming the activity in November, the bank sold 8,600 currency swap contacts linked to short-term interest rates. The contracts cancel out around $411 million of debt instruments indexed to the dollar. The dollar-linked notes were originally sold to prevent the real from weakening.