Sat, Aug 24, 2013 - Page 15 News List

Jakarta takes steps to boost confidence

CURRENCY TURMOIL:India said it has no plan to implement more capital controls, while Brazil said it was ready to intervene in the market to prop up the sagging real

AFP, JAKARTA, MUMBAI and RIO DE JANEIRO, Brazil

Subbarao later said this was enough to manage the current situation.

Meanwhile, the Bank of Brazil said on Thursday it was ready to intervene heavily on currency markets yesterday, making available US$55 billion to prop up the sagging real.

The central bank said it would engage in swap operations — that is, it will offer US dollars in the futures market, with a pledge to buy them back in a determined time frame no matter what they are worth.

A bank statement said that from Monday to Thursday the bank will offer US$500 million a day, and US$1 billion on Fridays.

The bank said it did not rule out other operations if it deemed them necessary.

So far this year, the bank has offered US$45 billion and is to inject US$55 billion through the end of the year.

The real has dropped 18.5 percent in value so far this year.

This story has been viewed 1982 times.
TOP top