Brazil c bank mulls use of derivatives on forex

BRAZIL - Brazil's central bank is considering the use of derivatives to intervene on the foreign-exchange market as of May 2002, a report said Thursday.

As of that date, the central bank will no longer be allowed to issue any debt, including dollar-linked notes, because of the Fiscal Responsibility Law.

The monetary authority currently has an arsenal of dollar-linked Treasury bills, but chairman Arminio Fraga said that "if the Treasury bills don't provide enough flexibility, the central bank will

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Geoeconomic reserve management

The world order is evolving. Whether, and how, the international economy remains integrated or shifts into spheres of influence has consequences for central bank policy and reserve management.

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