FROM THE OFFICE OF PUBLIC AFFAIRS

Brazil acted this morning to enhance the flexibility of its exchange rate system and reaffirmed its commitment to implement the program of fiscal adjustment and other reforms agreed with the IMF last year.

We are in close touch with the Brazilian authorities, the IMF, the G7, and the financial authorities of key emerging markets, and will continue to watch developments in world markets closely. It is important that Brazil carry forward the implementation of a strong, credible economic program.