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Brazil c.bank sells $4 billion in auctions with repurchase agreement after earlier fail

BY Reuters | ECONOMIC | 11/13/24 10:14 AM EST

SAO PAULO, Nov 13 (Reuters) - Brazil's central bank said it has sold all $4 billion offered in two dollar auctions with repurchase agreements on Wednesday, after earlier cancelling a similar scheduled operation due to technical issues.

It had announced on Tuesday that it would offer up to $4 billion in two simultaneous swap auctions with repurchase agreements on Wednesday morning, but ended up cancelling them this morning due to "messaging-related issues".

The monetary authority then published new notices for the operations and held both auctions on Wednesday afternoon, one after the other with a 15-minute interval.

According to the central bank, the repurchase dates for Wednesday's auctions are April 2 and July 2 of next year.

The Brazilian real recently tumbled against the U.S. dollar, amid the government's hesitation to announce spending cut measures, while market volatility was heightened by the U.S. presidential elections.

The central bank repeatedly says it only intervenes in the foreign exchange markets in cases of dysfunction and is not targeting a specific exchange rate.

It most recently carried out an additional swap auction in September.

The Brazilian currency reversed earlier gains and weakened around 0.5% against the greenback on Wednesday shortly after auction results were announced. (Reporting by Luana Maria Benedito; Editing by Alexander Smith and Chizu Nomiyama)

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