The dramatic turnaround in trade balances, combined with loans from the International Monetary Fund and a cautious resumption of private capitalinflows, has allowed some governments to start rebuilding foreign reserves.
The international financial crisis could deepen, with a more damaging impact on global economic growth and capitalinflows to Indonesia than we currently expect.
The stop was caused by a virtual freeze of capitalinflows and lending as Brazilian banks were much more reliant back then on low rate international interbank lending, Volpon says.