Brazil Working to Reduce Repo Operations, Treasury Official Says
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Brazil’s central bank is working to reduce the use of repurchase agreements, or repos, which are used to reduce liquidity in financial markets, according to Brazil’s Deputy Treasury Secretary Paulo Valle.
“Repo operations will diminish this year” as a percentage of gross domestic product, Valle said in an exclusive interview at Bloomberg headquarters in Sao Paulo on Wednesday. “It could also diminish in nominal terms too, depending on the fiscal adjustment and the rollover of the debt.”