Brazil's forex markets lost $308 million Thursday
Reuters, Friday, September 25, 1998 at 08:43
SAO PAULO, Sept 25 (Reuters) - Brazil lost $308 million
from foreign exchange markets Thursday as inflows to pay for a
recent privatization offset continuing dollar flight, traders
said Friday.
So far in September, $17.095 billion has left Brazil's
forex markets, bringing two-month losses to more than $30
billion.
The markets posted only moderate outflows as Electricidade
de Portugal brought in dollars to help pay for the stake in
Brazilian utility Bandeirante that it bought last week. EDP
brought in about $420 million total in the last two days.
Dollar flight is expected to pick up again today as
outflows continue without privatization inflows to offset them,
traders said.
A capital hemorrhage that averaged $1.5 billion a day
earlier this month has drained reserves to below $50 billion,
down from about $70 billion at the start of August, and
pressured the government to devalue its currency.
Some $103 million left the commercial forex market on
Thursday, the Central Bank said, while $205 million left the
floating forex market, traders said.
Copyright 1998, Reuters News Service |
