832.5151/1445: Telegram
The Ambassador in Brazil (Caffery) to the Secretary of State
[Received September 16—6:58 p.m.]
329. The exchange situation is very favorable. There is adequate cover for prompt payment of imports from the United States and as a result of the sharp increase in sales of export bills and the current decline in the import trade the Bank of Brazil is augmenting its reserve of foreign exchange. Banks are buying export bills at milreis 19.780 to milreis 19.880 (and selling at milreis 19.980). The milreis continues to firm on the curb market with purchases reported at milreis 21.700 to milreis 22.0.
The foreign exchange balance of the Bank of Brazil on September 15, amounted to $16,792,000 as compared with approximately $7,000,000 on August 31.
The bank continues to liquidate the “bought” position [in] German compensation marks. The balance on September 15, amounted to 5,450,000 compensation marks.