HALISTER1: BCB’s Signal of Full FX Swap Rollover Is Conservative: Rabobank

BCB’s Signal of Full FX Swap Rollover Is Conservative: Rabobank

(Bloomberg) -- BCB FX rollover announcement today signals, in principle, full rollover of June maturities, says Mauricio Oreng, Strategist at the Rabobank bank in Brazil.
  • "Apparently, BCB wants to stay neutral"
  • BCB may see risk of return of volatility
    • Foreign scenario has been more favorable to riskier assets recently
    • In Brazil, the market remains confident that pension reform should pass
  • Oreng does not see great chances of BCB changing the rate of 8,000 contracts per auction, only in case of sudden BRL appreciation
  • NOTE: Brazil to Roll Over Up to 8,000 FX Swaps May 16
Original Story: Rabobank: BC foi mais conservador ao sinalizar rolagem integral To contact the translator on this story: Giulia Camillo in Sao Paulo at gcamillo@bloomberg.net Reporter on the original story: Vinícius Andrade in São Paulo at vandrade3@bloomberg.net Editors responsible for the original story: Daniela Milanese at dmilanese@bloomberg.net Taís Fuoco

Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
RABO NA (Cooperatieve Rabobank UA)

People
Mauricio Oreng (Banco Rabobank International Brasil SA)

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