Brasilia, 28 (Agência Brasil - ABr) - The Central Bank's director of Monetary Policy, Luiz Fernando Figueiredo, and the undersecretary of the National Treasury, Rubens Sardenberg, announced Wednesday that the Central Bank and National Treasury will begin executing security "swap" operations in conjunction with the primary offer of National Treasury Financial Notes (LFTs). The purpose is to improve the instruments used in the financial market. The joint operation should begin in the next few days.

According to Figueiredo, the new instrument will allow investment funds to purchase LFTs in the primary auction, through financial institutions, and allow them to purchase "swaps" to pass on to their clients. "The new instrument is a facilitator for the market and for investors who wish to purchase securities. It's up to us to always offer the best security possible," he stressed.

Figueiredo explained that, with the new instrument, the market will be able to separate security risk, on one hand, from bond risk, on the other. According to him, this will facilitate the process between investors and the market itself. (MW)