BRASILIA (Reuters) – Brazil’s government on Friday authorized the central bank to extend its $60 billion swap line with the U.S. Federal Reserve until the end of September.
The swap line, which has never been used, was opened in March last year at the onset of the COVID-19 pandemic and was scheduled to expire in March this year.
“This line does not imply any economic policy conditionality, and expands the funds and instruments available for the provision of dollar liquidity by the central bank,” the monetary authority said in a statement.
“The liquidity line adds to the bank’s available tools to deal with the high market volatility due to the Covid-19 pandemic,” it added.
(Reporting by Isabel Versiani; Writing by Jamie McGeever)
