Brazil’s central bank will hold two simultaneous foreign exchange auctions on Thursday, including a spot offering of up to $1 billion and a reverse currency swap operation equivalent to $1 billion.
The spot auction, scheduled from 9:20 AM to 9:25 AM local time, will see the Banco Central sell dollars from its international reserves to authorized dealers. This move effectively withdraws dollars from circulation, tightening liquidity in the foreign exchange market.
In parallel, the central bank will offer up to 20,000 reverse currency swap contracts, also totaling $1 billion. These contracts, which function as dollar purchases in the futures market, will commence on August 28 and mature on October 1, 2026. The combined operations reflect the central bank’s efforts to manage exchange rate volatility amid evolving market conditions.
The announcements were made late Wednesday, following recent adjustments in Brazil’s foreign exchange policy framework.
