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Strategies & Market Trends : Telebras (TBH) & Brazil -- Ignore unavailable to you. Want to Upgrade?

To: David Petty who wrote (11716)	1/14/1999 4:35:00 PM
From: Steve Fancy	Read Replies (1) \| Respond to of 22640

David...why not...I think (not positive) that this has happened several times before? Somebody was propping the price up right through the Bovespa halt. Other than something related to options expiration, who else would be doing that with all the rumors in the air. Next devaluation, if it occurs, TBH could turn fast. Percentage wise, TNE really go whacked today. Remember that bids on the mirror licenses for TNE and EMT are supposed to be opened tomorrow. Looking at all the babies, you can see they're getting reluctant to go much lower. sf

To: David Petty who wrote (11716)	1/14/1999 4:42:00 PM
From: Steve Fancy	Respond to of 22640

Brazil cenbank says ready to defend forex policy Reuters, Thursday, January 14, 1999 at 16:10 BRASILIA, Jan 14 (Reuters) - The Brazilian Central Bank said on Thursday it was fully prepared to meet the needs of the foreign exchange market and prepared to use reserves or interest rates to defend its foreign exchange policy. The bank said in a statement that market nervousness was "absolutely natural" following its decision on Wednesday to change the trading bands for the currency, devaluing the cherished inflation-busting real by more than 8 percent. It also denied market rumors the central bank might decide to float the real, leaving its value against dollar completely up to market forces. "The Central Bank is fully capable of attending the needs of the market and remains prepared, as it has unequivocally shown, to use the reserves and interest rates to defend the foreign exchange policy," it said. "Market speculation about the possible adoption of a floating exchange rate regime are absolutely unfounded and untrue," the bank added. The statement added that the Central Bank was monitoring the markets and would inject liquidity when necessary to defend the currency band system. Brazil rocked world markets on Wednesday when Central Bank President Gustavo Franco resigned and his successor Francisco Lopes announced it was abandoning the miniband for the real and raising the wider band to a range of 1.20 to 1.32 reais per dollar. The move represented a devaluation of more than 8 percent of the real weakening the backbone of a five-year economic plan known as the Real Plan which rescued the world's eighth biggest economy from chronic hyperinflation. Copyright 1999, Reuters News Service

To: David Petty who wrote (11716)	1/14/1999 4:45:00 PM
From: Steve Fancy	Read Replies (1) \| Respond to of 22640

Brazil's real again ends at new forex band's limit Reuters, Thursday, January 14, 1999 at 16:24 SAO PAULO, Jan 14 (Reuters) - Brazil's currency, the real, closed at 1.32 reais to the dollar in the commercial foreign exchange market on Thursday, ending at the outer limit of the Central Bank's new forex band for the second straight day, traders said. Brazil's Central Bank on Wednesday devalued the real by scrapping the forex mini-band and replacing it with a new, wider maxi-band, whose limit was set at between 1.2 and 1.32 reais per dollar. Traders said expectations of further dollar outflows from the country's currency markets kept the real weak, and the Central Bank had to sell dollars in forex markets to prevent it from breaching the new band. Nervousness in the market, one day after the government devalued the real, fueled dollar outflows from markets, traders said. A net $1 billion was estimated to have been pulled out of markets on Thursday. The real also finished at 1.32 per greenback in the floating market, after the Central Bank sold dollars to prevent the local currency from weakening further. In the parallel market, or black market, the real weakened 0.36 percent to close at 1.38 reais. In the futures' market, February dollar futures contracts rose 1 percent to 1.25 reais, as more investors sought the U.S. currency, traders said. sao.paulo.newsroom@reuters.com)) Copyright 1999, Reuters News Service