SAO PAULO, June 10 (Reuters) - Brazil’s central bank decided on Wednesday to reduce the rollover pace of currency swaps that mature early next month, a move that is likely to weigh on the Brazilian real.
The bank said in a statement it will auction on Thursday as many as 6,300 currency swaps to roll over similar contracts that mature on July 1. Since the beginning of the month, the central bank had been offering as many as 7,000 contracts per day.
Currency swaps are derivatives that support the real by providing investors with protection against currency losses. (Reporting by Walter Brandimarte; Editing by Diane Craft)