Brazil central bank seeks to draw on new Fed line

Wed Oct 29, 2008 3:46pm EDT
SAO PAULO, Oct 29 (Reuters) - Brazil's central bank said on Wednesday it will adopt the necessary regulatory measures to allow it to draw on a new $30 billion currency swap line established by the U.S. Federal Reserve.
The central bank also stressed that Brazil's National Monetary Council would set the conditions for it to take advantage of the new lending facility from the Fed.
"This agreement is part of the central bank's strategy to combat the effects of the international financial turbulence on the Brazilian economy," the bank said in a statement.
Earlier, the Fed established four new currency swap lines of $30 billion each with Brazil, Mexico, South Korea and Singapore, broadening its efforts to ease U.S. dollar funding shortages around the world. (Reporting by Todd Benson; Editing by James Dalgleish)