21.   With the bond swap market shrinking, Nomura Trust is looking to repos for new opportunities to grow.

22.   But the bank intervened in the swap market to bring swap rates out of negative territory and prevent arbitrage practices.

23.   Currency dealers have said the central bank has been active lately defending the rupiah from continuous attack by intervening both in the spot and swap markets.

24.   He noted that the interest rate drop in the swap market also contradicted the worries that a CBS would create a rush from the rupiah to U.S. dollars.

25.   He said the central bank intervened in the swap market to move short-dated swaps away from negative territory as offshore and onshore operators were flush with cash.

26.   He said the central bank was not seen intervening in the spot market yesterday, but it sold dollars and drained rupiah from the swap market and money market.

27.   However, Bandid admitted that the currency intervention in the foreign exchange swap market would represent only temporary measure to buy time for confidence to be restored.

28.   Investors in the swap markets make agreements to buy and sell baht for a fixed price at a specified time in the future.

29.   It was also higher in the swap market, where investors make agreements to buy and sell baht at fixed prices at fixed times in the future.

30.   Rerngchai practically admitted the BOT had been actively intervening in the foreign exchange swap market with overseas counterparties to shore up the baht.