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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Haim R. Branisteanu who wrote (53155)	8/5/2009 11:22:20 AM
From: elmatador	Read Replies (1) \| Respond to of 218117

The man is no AG!!! "Excessive market euphoria is a worry for us," Meirelles told members of the Senate Economic Affairs Committee. "Excessive euphoria can lead to distortions in market prices." The central bank president didn't offer a specific formula for dealing with market volatility, adding, "Everyone, from government and from the financial industry, should try to keep their feet on the ground." Brazil Central Bank Pres Warns On Market Euphoria BRASILIA (Dow Jones)--Brazilian Central Bank President Henrique Meirelles reiterated past warnings about "excessive market euphoria" in congressional testimony Wednesday but stopped short of detailing any actions the institution might take to counter volatility. "Excessive market euphoria is a worry for us," Meirelles told members of the Senate Economic Affairs Committee. "Excessive euphoria can lead to distortions in market prices." The central bank president didn't offer a specific formula for dealing with market volatility, adding, "Everyone, from government and from the financial industry, should try to keep their feet on the ground." Brazilian assets have staged a major recovery in recent weeks on hopes for a quick exit from recession by Latin America's biggest country. The benchmark Ibovespa stocks index has gained a spectacular 48% so far in 2009, most of it since March. The Brazilian real has advanced 28% against the U.S. dollar since Jan. 1. Commenting specifically on the foreign exchange market, the central bank chief reiterated his traditional position, saying the Brazilian government has no target for the foreign exchange rate. However, Meirelles said the central bank would continue to intervene in the foreign exchange market whenever necessary to counter excessive volatility. At the end of 2008 and the beginning of 2009 such interventions meant sales of U.S. dollars to the market because of the global credit crunch. Since March, however, the central bank has been rebuilding foreign reserves by buying dollars from the market. Meirelles said the central bank has purchased $8.2 billion from the market so far in 2009. Meirelles said government officials are satisfied that Brazil's economy "is on its way to a gradual but solid recovery" from recession. "Brazil will recover faster than other countries," he added. He said the financial system has "weathered the storm" caused by the global credit crunch, with credit availability in Brazil now approaching pre-crisis levels. He said the trend is for credit availability to continue to expand. -By Gerald Jeffris and Tom Murphy, Dow Jones Newswires; 55-11-2847-4519; brazil@dowjones.com