Brazil to offer $1 bln in repos for trade lines

Tue Feb 10, 2009 9:09am EST
SAO PAULO, Feb 10 (Reuters) - Brazil's central bank said on Tuesday it will offer up to $1 billion in dollar repurchase agreements in an auction on Wednesday aimed at increasing trade finance lines squeezed by the global credit crunch.
Brazil's currency, the real BRBY, was trading 0.6 percent weaker at 2.251 per dollar shortly after the announcement of the repo auction.
Selling repos is one of several measures Brazil's central bank has taken to add liquidity to the domestic financial system in recent months. It has also sold dollars from its international reserves on the spot currency market as well as foreign currency swaps. (Reporting by Jenifer Correa; Writing by Elzio Barreto; Editing by James Dalgleish)