The Inter-American Development Bank, alongside the government of Brazil, has announced a new structure that involves lending out its AAA credit rating to foreign investors to provide them with access to cheaper long-dated foreign exchange hedges for projects in the country.
While liquidity for US dollar/Brazilian real hedges is scarce beyond the one-year point, the new structure allows Brazilian banks to tap the IDB’s credit rating to offer FX derivatives hedges to foreign investors in local
You are currently unable to copy this content. Please contact info@fx-markets.com to find out more.
