In a speech at the American Chamber of Commerce in Rio de Janeiro, the president of the Central Bank, Henrique Meirelles, declared that the external situation at the moment is favorable for Brazil.
Meirelles said the reduction of the country's average net foreign debt from 35.9% of GDP to 14.8% was a strong point. He pointed out that the country's reserves were once again close to 50% of total debt.
"Reserves reached $53.8 billion at the end of 2005 and continue to rise," he said. As for foreign debt, it has fallen $80.3 billion over the last five years as the country eliminated its current account deficit, and entered a period of growth accompanied by current account surpluses: a very good sign, said Meirelles. He concluded by saying that the result of sound economic policy was higher resistance to shock waves from abroad and an economy that was much less vulnerable.