Brazil Real Rises as Central Bank to Sell $50 Billion of Swaps

By Jamie McGee

Oct. 23 (Bloomberg) -- Brazil's real rose, erasing an initial decline of as much as 5.8 percent, as the central bank said it's prepared to sell as much as $50 billion of currency swaps to stem a two-month rout.

The real gained 1.8 percent to 2.3373 per dollar at 9:37 a.m. New York time, from 2.379 yesterday. The central bank also bought reais in the spot market to shore up the currency after it dropped 11 percent over the past two days.

``It's a very significant chunk of money,'' said Alvise Marino, an emerging-markets analyst at IDEAglobal in New York. ``The central bank is willing to go beyond expected.''

To contact the reporter on this story: Jamie McGee in New York at jmcgee8@bloomberg.net