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Brazil central bank gains 74.86B reais on currency swaps through December

Banco Central do Brasil recorded a monthly gain of some 3.16 billion Brazilian reais through Dec. 23 from its currency swap operations, Valor Econômico reported.

In the year-to-date period through Dec. 23, the central bank's gains with currency swap transactions amounted to a record high of about 74.86 billion reais. In 2015, the regulator saw a record loss of 89.66 billion reais, the report said.

Since 2008, when these instruments have been more frequently used, the central bank has reportedly recorded an overall negative balance of 23.64 billion reais.

In terms of international reserves, the regulator saw a loss amounting to 321.77 billion reais through Dec. 23, compared to gains of 260 billion reais recorded in 2015, the Dec. 28 publication noted.

A re-evaluation of the relationship between the central bank and the National Treasury is part of an agenda recently presented by the regulator. The idea is to create a reserve of results, which would reduce volatility of flows between the central bank and the Treasury, the publication noted.

As of Dec. 28, US$1 was equivalent to 3.28 Brazilian reais.