The Central Bank of Brazil will hold a reverse foreign exchange swap auction on June 22, offering up to 20,000 related contracts.

Reverse foreign exchange swaps are commonly used by central banks in emerging markets as a tool to regulate exchange rates. The Central Bank of Brazil typically launches such operations to adjust foreign exchange market liquidity and stabilize fluctuations in the local currency, the Real. The market will closely monitor the final subscription of this auction and its actual impact on Brazil's foreign exchange market.