Brasília, March 25, 2004 (Agência Brasil) - The foundations of the Brazilian economy are very solid today, and the country has not enjoyed this much economic stability in a long time, to the point of recovering international credibility in the management of its problems." This affirmation was made by the president of the Central Bank, Henrique Meirelles, during a hearing today before the Senate Economic Affairs Commission.

He pointed out that some aspects of monetary policy were essential to the reduction of the government's exchange rate-linked debt, and this is reflected in the confidence deposited in the country's economy. An example of this, he said, is the resumption of industrial activity. A condition that, together with sustained growth and stability, is basic for the reduction of unemployment in the country.

For this, he emphasized the need for "a concerted effort" and perseverance by the entire country. Meirelles also affirmed that, beginning in 1998, Brazil adopted a path of consolidated fiscal readjustment, which favored the robust surplus that the trade balance has been amassing, to the point where it closed 2003 with a surplus of US$ 24.8 billion, and, during the 12-month period ending in February, produced a surplus of US$ 26.1 billion, the largest on record.

A performance which, according to Meirelles, contributed to a US$ 4.1 billion current account surplus last year. He also believes that a similar surplus can be maintained this year, as well. A declaration which runs counter to the estimate announced yesterday by the Central Bank itself, that the surplus would come to only US$ 200 million.

Translator: David Silberstein