Shipkevich Bitcoin and ICO Attorney
Felix Shipkevich November 15, 2009

Brazil’s Treasury Secretary Arno Agustin confirmed new measures for the currency market are on the way.

First, Agustin said “we will resume foreign issues in reais,” as Market News International reported Oct. 9.

But he said since interest rates for real-denominated issues have risen since Treasury’s last off-shore issue in June 2007, “we cannot place a large volume of bonds” so that the “macroeconomic effect” will be “small.”

Also, the Treasury will receive the ability to use its Sovereign Wealth Fund — currently used to reduce the budget deficit — to buy dollars on the spot market, adding firepower to the Central Bank’s interventions.

The Central Bank recently issued a new regulation, requiring companies and banks register all credit operations made abroad that are linked to derivative operations in Brazil, seen as a possible first step to regulating such operations, and their use for currency trades.