Brazil's forex markets lose $455 million Tuesday
Reuters, Wednesday, September 30, 1998 at 08:45
SAO PAULO, Sept 30 (Reuters) - Brazil lost another $455
million through its foreign exchange markets Tuesday, traders
said, as dollars continued to flow out of the country.
Some $40 million left through the commercial forex market,
according to the Central Bank, while another $415 million left
through the floating forex market, traders said.
Brazil has registered more than $30 billion in net dollar
outflows since the beginning of August as investors yanked
their money out of the Brazil and other emerging markets on
growing concern amid the financial crisis in Russia.
Brazil responded with a sharp hike in interest rates to
almost 50 percent in a bid to plug the dollar flight that was
draining reserves and pressuring the currency.
The measure, which slowed outflows but failed to stop them,
is seen preventing considerable damage to reserves through
Sunday elections, at which point the government will have to
present more far-reaching economic reforms, according to
economists.
shasta.darlington@reuters.com))
Copyright 1998, Reuters News Service
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