Brazil to use foreign exchange reserves to help exporters
7/10/2008 15:49
Brazil has decided to use part of its foreign exchange reserves to help
its exporters amid the global financial crisis, Finance Minister Guido Mantega
said yesterday.
The state-owned Brazilian Development Bank will also open a
new credit loan of US$2.5 billion to aid Brazil's exporting businesses, Mantega
said.
The details of the government's bailout policy would be made public
today, the minister added.
The decision was made in order to ease the panic
in the Sao Paulo Stock Exchange (Bovespa), which suffered a 15 percent fall in
the morning session yesterday.
Mantega said Brazil's economy was "strong
enough" to deal with the crisis.
"In Rio De Janeiro we do not have rotten
assets, although we are suffering liquidity problems," he said, adding that the
government is taking all necessary measures to ensure the liquidity in the
country's markets.
Brazilian foreign currency reserves now stand at about
US$207 billion, according to figures published on the central bank's
website.
Xinhua
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