Brazil currency reserves $42.6 bln by end October
Reuters, Friday, November 13, 1998 at 13:45
BRASILIA, Nov 13 (Reuters) - Brazil's foreign currency
reserves fell to $42.6 billion by the end of October according
to the international liquidity concept, which includes accounts
receivable, the Finance Ministry said in a memorandum Friday.
Reserves were down from $45.8 billion at the end of
September, the ministry said in the document, which it said
replaced the traditional letter of intent countries sign for
loan agreements with the International Monetary Fund (IMF).
The IMF and wealthy industrialized nations earlier
announced a package of more than $41 billion for Brazil, hoping
to avert an Asian-style financial meltdown in Latin America's
biggest economy.
Brazilian officials had been working with IMF
representatives in Washington for a week on the terms of the
letter of intent.
The Finance Ministry forecast Brazil's current account
deficit would drop to 3.5 percent of gross domestic product
(GDP) in 1999 from 4.2 percent of GDP in 1998.
Economists say the current account gap, which includes
imports and exports of merchandise and payments and receipts
for services such as shipping, banking and tourism, makes the
domestic currency vulnerable to speculative attack.
raquel.stenzel@reuters.com))
Copyright 1998, Reuters News Service |
