Central bank free to sell exchange swaps

BRAZIL - The International Monetary Fund (IMF) discloses today a memorandum revising its accord with Brazil.

The document permits the Central Bank to realize operations linking sales of Financial Treasury Bills (LFTs) and exchange swaps, but it does not allow transactions in exchange derivatives. Today, there will be a simulation of this type of auction. Under the accord, Brazil can also draw on another US$4.6 billion from the IMF.