BRAZIL TEMPORARILY LEGALISES DLR PARALLEL MARKET
Brazilian President Jose Sarney
announced a move which temporarily legalises the purchase of
U.S. dollars in the parallel currency market, aimed at
promoting imports of foreign goods.
    In a speech, Sarney justified his measure as a need to face
"current well known difficulties to obtain foreign loans for the
purchase of goods."
    The parallel market, although officially tolerated, is
technically illegal in Brazil. For the past year, the dollar in
the parallel market has sold at between 25 and 100 pct above
the official rate.
    Sarney's decision means Brazilian importers of machinery
and industrial equipment can buy dollar currency in the
parallel market without having to wait for an official order
from the Banco do Brasil's Foreign Trade Department (Cacex).
    Sarney also announced measures to boost exports in an
effort to strengthen the country's trade balance and alleviate
the risk of a reduction of foreign loans for this sector of the
economy.
    The president authorised the National Foreign Trade Council
(CONEX) to resume operating as the ruling body of Brazil's
trade policy, with participation of the private sector.
    The Council had been closed three years ago by the military
government of former President Joao Figueiredo.
 Reuter
