Central Bank of Brazil Sells $1.2 bln In Forex Swaps

Brazil's central bank sold about $1.2 billion in dollar swaps in an auction on Thursday, rolling over a similar batch of paper coming due on Jan. 2.

The bank sold 24,400 of 69,500 contracts on offer.

Brazil's currency, the real BRBY, extended gains after the auction, surging almost 4 percent to 2.336 per dollar.

In addition to selling swaps, the central bank has also sold dollars and dollar repurchase agreements in recent months to add liquidity and reduce volatility in the foreign exchange market.