Brazil’s support sustainable investments

Brazil’s government is set to unveil new initiatives to aid foreign investors in sustainable development with foreign exchange hedging, minimizing currency and fiscal risks for the Treasury.

The proposal includes a new route for approximately $2 billion in currency derivatives, contracted by the Inter-American Development Bank (IDB) and dispersed in Brazil by the central bank.

The program will take advantage of the IDB’s triple-A credit rating to enable longer-term and less expensive currency derivatives to stimulate foreign investment in Brazil’s “green” development projects.

The government will also allow the central bank to extend the terms of its $100 billion stock of swaps to improve liquidity and lower currency volatility.

The foreign exchange package will also include an IDB-backed liquidity line for structured project financing for green initiatives.


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