Brazil forex mkts seen losing btwn $500 mln-$1 bln
Reuters, Thursday, January 14, 1999 at 13:16
SAO PAULO, Jan 14 (Reuters) - Brazil should see net dollar
outflows of between $500 million and $1 billion through foreign
exchange markets on Thursday, traders said, after a currency
devaluation on Wednesday spurred further capital flight.
"Investors, especially foreigners, aren't convinced we
won't devalue more," a trader at a local brokerage said.
"Still, it could be worse," he said, referring to the capital
flight which topped $1.5 billion a day after the Russia crisis.
The Central Bank implemented on Wednesday a new, wider
trading band and the currency quickly tumbled 8 percent against
the dollar.
For the past two days, the Central Bank has been forced to
sell dollars to keep the real within the new trading band set
at between 1.20 and 1.32 to the dollar.
As of 1545 local/1745 GMT, a net $107 million had flowed
out of forex markets. Traders said they expected the daily net
outflows to come in between $500 million and $1 billion, under
Wednesday's $1.095 billion.
Copyright 1999, Reuters News Service
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