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At 01:11 PM 9/11/98 -0300, you wrote:
>Hi Netters,
>I´ve been watching commentaries about the melt down of Brazil
>recently in this list. I would like to add to these my opinion.
>
>Do not bet against Brazil. Brazil is very rich.
>snip
>I guess this time the strategy will be different but the Brazilian
>Central Bank has megatons of dollars to unload at anyone.
>Alfredo
This extract from Reuters yesterday:
NEW YORK (Reuters) - Stocks of Brazilian companies trading in the United
States were pounded to 12-month lows Thursday amid fears of a possible
currency devaluation in Latin America's biggest country.
Heightening fears of a devaluation, Brazil's foreign reserves continued to
melt away in defense of the currency, the real. The Brazilian Central Bank
said it had used $12 billion to defend the real since the start of the month
and had $55 billion left.
_________________________________________________________________________
Today they jacked up interest rates as part of the defence to slow a recent
$2 billion exodus of capital and the stock market rallied 6%, after
yesterday's big selloff.
Brazil is America's 4th largest trading partner. It cannot be compared to
Russia in terms of financial impact on the US.
Michael Paauwe
mpaauwe@xxxxxxxxxx
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