Meirelles says Brazil can cope without IMF aid

"Last September we set a net reserve goal of $20 billion for December 2004, and in February, we're (already) at $21 billion," Meirelles was quoted as saying in an interview published on Tuesday 17 February in the French financial daily Les Echos.

Asked what effect the Federal Reserve increasing interest rates would have Meirelles said the Banco Central Do Brasil's policy would be to "prepare Brazil for a period of reduced international liquidity."

He pointed out "There will be no growth or employment in an inflationary environment". The central bank chief said the present economic or monetary policies would continue unchanged to ensure the future of the Brazilian economy, and noted that the conditions necessary to reactivate growth are already in place.