MNI China Daily Summary: Friday, April 26

MNI BRIEF: China, US Should Strengthen Dialogue, Cooperation

MNI BRIEF: SNB Framework Reform 'Playing With Fire' - Steiner

MNI: PBOC Conducts CNY2 Bln Via OMO Fri; Liquidity Unchanged

CHINA PBOC INJECTS CNY2 BILLION VIA 7-DAY REVERSE REPOS FRI

MNI: PBOC Sets Yuan Parity Lower At 7.1056 Fri; -4.56% Y/Y

MNI: BAKER HUGHES US RIG COUNT 613; OIL RIGS 506; GAS RIGS 105

MNI: UNIV OF MICHIGAN CONSUMER SENTIMENT FINAL APR INDEX 77.2

EZ/UK T-Bill Calendar: Germany, France Auction on Monday

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

© 1982-2023 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

MNI: Brazil To Bolster Legal Basis Of Longer CenBank Swaps

(MNI) BRASILIA

Brazil will enable its central bank to provide longer-dated FX swaps, a source says.

HomepageBellEM Policy NewsEM ExclusiveEM SourcesEM Central Bank NewsLatAmBrazil Central BankBrazilStoryRegion

Upcoming government regulation to explicitly allow the Central Bank of Brazil to issue longer-term foreign currency swaps will formalize a capacity it already has in order to avoid potential legal problems, a source familiar with the matter told MNI.

The BCB’s stock of USD100 billion in swaps are currently issued with a 365-day maturity, with its legal department advising against longer terms. The change, which will encourage it to issue longer-dated derivatives "when and if necessary", would enhance liquidity for extended periods of time. The measure comes following discussions between the technical BCB team and currency dealers, a source said, adding that there was no intention to increase the central bank’s current stock of contracts.

Keep reading...Show less
241 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

Upcoming government regulation to explicitly allow the Central Bank of Brazil to issue longer-term foreign currency swaps will formalize a capacity it already has in order to avoid potential legal problems, a source familiar with the matter told MNI.

The BCB’s stock of USD100 billion in swaps are currently issued with a 365-day maturity, with its legal department advising against longer terms. The change, which will encourage it to issue longer-dated derivatives "when and if necessary", would enhance liquidity for extended periods of time. The measure comes following discussions between the technical BCB team and currency dealers, a source said, adding that there was no intention to increase the central bank’s current stock of contracts.

Keep reading...Show less