“The new intervention program announced by the BCB Thursday sees the central bank offering $500 million of dollar swaps in the currency derivatives market on a daily basis for the rest of 2013, and $1 billion of FX spot lines on Fridays. Essentially, the BCB is taking a big short position in the U.S. dollar. The BCB is conducting the majority of the real-bolstering intervention in the derivatives market as opposed to the spot market because under the latter scenario, the central bank has to burn through the U.S. dollar component of its foreign reserves in order to prop up the currency, whereas with swaps, foreign reserves don’t come into play.”
http://www.businessinsider.com/the-bcbs-new-fx-intervention-program-2013-8
Related posts:
Taxpayers Held Liable After Cops Command K9 to “Eat” Handcuffed Man
0-day bug in fully patched OS X comes under active exploit to hijack Macs
Hedge Fund Economist David Rosenberg Departs From Deflation Camp
Surveillance Back Door Worse Than No Door
'Biometric Classroom' Monitors Students' Eye Movements And Conversations
Creator of drone casualties visualization hopes data will ‘shock’ people
Can Police Read Text Messages Without A Warrant?
Uneasiness in the Netherlands about national gold reserve
U.S. was ‘hair’s breadth’ from detonating nuclear bomb over North Carolina
Swiss Fund Centralway Invests $250k In Bitcoin Exchange Buttercoin
The Warning Inherent in Escalating Official Lawlessness
FBI facial records could contain 52 million images by next year
Peak Gold
Dark money: only 35 Bitcoin dealers are compliant with US law
All You Need to Know About The U.S. Government