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2013.08.2302:24:00UTC+00Brazil Announces $60 Bln Currency Intervention

Brazil's central bank announced a $60 billion currency intervention program that involves swap contracts and credit line repurchases, in a bid to contain the exchange rate volatility.

The central bank late Thursday said it will hold $1 billion dollar repurchase auctions every Friday and daily swap auctions of up to $500 million on Monday through Thursday of each week.

The program will continue until December and it will take additional measures in the foreign exchange market if necessary.

The central bank had been auctioning swaps and loans over recent months without a well established schedule.

The Brazilian real fell to 2.4544 against the US dollar on Thursday, its weakest level in 4-1/2 years and a massive 7.7 percent depreciation so far this month alone. The central bank intervention provided little comfort to the local currency, improving to 2.4199 from its overnight multi-year lows.

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