Brazil central bank gauges demand for reverse swap, traders say
SAO PAULO, March 18 (Reuters) - Brazil's central bank is consulting foreign currency traders whether there is demand for reverse currency swaps, in an indication that policymakers are uneasy with recent gains in the real, four traders with direct knowledge of the situation said on Friday.
No timetable for a potential swap auction was discussed with the traders, who added the talks were aimed at gauging demand for the instrument. Reverse currency swaps are instruments through which the central bank can weaken the real, and can be seen as the equivalent to buying U.S. dollars in the futures market.
The central bank did not have an immediate comment. (Reporting by Guillermo Parra-Bernal and Bruno Federowski; Editing by Chris Reese)
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