Brazil

Brazil

From the 1970s onwards, government spending and service of the public debt

were the reasons for high inflation, and the subsequent rise in prices. Inflation

was Brazil's greatest monetary problem until President

Exchange rates: Brazil

reals (R$) per US$1

Jan 2001 1.954

2000 1.830

1999 1.815

1998 1.161

1997 1.078

1996 1.005

Note: From October 1994 through January 14, 1999, the official rate was

determined by a managed float; since January 15, 1999, the official rate

floats independently with respect to the US dollar.

SOURCE: CIA World Factbook 2001 [ONLINE].

Fernando Henrique Cardoso in the mid-1990s adopted measures to slow down

government spending and renegotiate public debt in order to contend with

inflationary pressures. Brazil's currency was constantly devalued against

the U.S. dollar. Currency devaluations generated incentives for the export

market, decreasing the trade imbalance caused by debt payments and excess

imports of manufactured goods. Devaluation helped the export market, wh

ich

expanded its production when exports were given a price advantage provided by

cheaper products in the world markets, but also represented a burden for domestic

consumers who faced higher prices on imported goods. In the period from 1995 to 2000,

the real devalued by approximately 100 percent. In 1995, 1 U.S. dollar was equal to 0.9176

reals. In 2000, 1 U.S. dollar was equal to 1.8302 reals. The devaluation was largely felt in

early 1999, when the central bank of Brazil adopted a floating exchange rate system. The real

then fell by 56 percent from 1998 to 1999.

In the past, Brazil had as many as 9 regional stock exchanges. However, with consolidations of

the stock markets in the early 1990s and the advent of electronic trading, all securities

transactions in Brazil are carried out in São Paulo, at the São Paulo Stock Exchange (BOVESPA).

There are approximately 1,100 companies listed on the São Paulo exchange. The total market

valuation of all listed companies on the São Paulo Exchange was US$228.6 billion in February 2001.

Daily transactions are published in the leading newspapers and are available on the Internet.

BOVESPA is part of the leading technology exchanges, offering electronic and after-hours trading

options. The Rio de Janeiro Stock Exchange is the oldest financial institution in the country,

founded in 1845. The Rio de Janeiro exchange is responsible for all the transactions in government

bonds. Futures transactions are carried out at the Mercantile Futures Exchange (BM&F). Located in

São Paulo, the BM&F has been operating since 1986 and is used mainly by coffee, beef, and cattle

producers and buyers.

GDP per Capita (US$)

Country 1975 1980 1985 1990 1998

Brazil 3,464 4,253 4,039 4,078 4,509

United States 19,364 21,529 23,200 25,363 29,683

Argentina 7,317 7,793 6,354 5,782 8,475

Colombia 1,612 1,868 1,875 2,119 2,392

SOURCE: United Nations. Human Development Report 2000; Trends in human development and per

capita income.

Bouvet Island

Bouvet Island

Botswana

Botswana

The Botswana pula has traditionally had a similar exchange rate to the

South African rand, which meant that goods sold for almost the same price

in both countries.

Exchange rates: Botswana

pulas per US$1

Jan 2001 5.4585

2000 5.1018

1999 4.6244

1998 4.2259

1997 3.6508

1996 3.3242

SOURCE : CIA World Factbook 2001 [ONLINE].

During the late 1990s the pula was much stronger than the rand, resulting in

South African products becoming relatively cheaper when purchased in pula.

Botswana could afford to import more South African products. The stronger

pula relative to the rand also meant that foreign investors found Botswana

a more attractive place to invest money. However, during the same time period

the pula gradually lost its value against the U.S. dollar, meaning that imports

valued in U.S. dollars, such as those from the United States it

self as well as from

many other countries, were more expensive. But Botswana's exports, especially diamonds,

were cheaper for American and European buyers.

The Botswana Stock Exchange, established in 1995, had 22 companies listed in 2001,

including 6 South African companies.

Bosnia and Herzegovina

Bosnia and Herzegovina

After the ethnic leaders failed to agree on a new currency, the UN introduced in 1998 a

new currency, the

Exchange rates: Bosnia

marka per US$1

Jan 2001 2.086

2000 2.124

1999 1.837

1998 1.760

1997 1.734

1996 0.015

SOURCE: CIA World Factbook 2001 [ONLINE].

convertible mark. The convertible mark was fixed to the German mark. It gained acceptance,

and the Central Bank of Bosnia and Herzegovina increased its reserves. Yugoslav dinars still

circulate in the Serb Republic, and the Croatian kuna is used in the Croat areas of the Federation.

The government is still hoping to increase its capitalization by pressing for the privatization

of the numerous small commercial banks. Raiffeisen Zentralbank Oesterreich, an Aus

trian bank,

recently acquired many banks, including the Market Banka. The Austrian bank has also submitted

privatization papers to the government bank privatization unit. It is not clear whether this will

attract foreign attention, because the banking sector is weak and the economy is being reconstructed

slowly.

Bolivia

Bolivia

The Bolivian currency has had severe fluctuations as a consequence of the Chaco

War (1932-35); the 1952 revolution with its drastic economic, political, and

social reforms; and the collapse of much of the mining industry, especially tin

extraction and export. In 1975, the boliviano was devalued by 66 percent (US$1=Bs20.40).

In 1979, there was a further 25 percent devaluation. By 1982, the Bolivian currency had

totally collapsed, and until 1985 Bolivia suffered hyperinflation, one of the worst cases

in recent world history. Inflation reached 23,000 percent with US$1 traded at Bs1,055,000.

In 1985, strong economic measures were undertaken to reconstruct the Bolivian economy and

its currency. Currently it is one of the most stable currencies in Latin America, with a free

floating exchange rate and pegged to the U.S. dollar. Inflation has declined from 13 percent to

3 percent in 1999. In March 2001, US$1=Bs6.48. (In 1995, it was Bs4.86.) The U.S. dollar circulates

freely and is generally accepted as payment, mainly in urban areas.

Bolivia has about 18 private banks, some with links to foreign banks such as Citibank.

The Banco Central (Central Bank), established in 1929 but with roots going back to 1871,

is a semi-independent government agency. Its mandate is to implement the Bolivian government's

fiscal and monetary policies, including issuing the currency. Its governing board is nominated

by the president of the Republic, and it needs the approval of two-thirds

Exchange rates: Bolivia

bolivianos per US$1

Jan 2001 6.4071

2000 6.1835

1999 5.8124

1998 5.5101

1997 5.2543

1996 5.0746

SOURCE: CIA World Factbook 2001 [ONLINE].

of the elected representatives of the lower chamber. Terms are staggered, and the term of

the president of bank cannot coincide with the term of the president of the Republic. The

Banco Central and some private banks have recently received praise from international agencies

for their stability and fiscal soundness.

There is a small Bolivian Stock Exchange which was started in 1989, but there is no

published index of stock prices. In 1989, the exchange's transactions came to Bs4.3

billion but only to Bs3.9 billion in 1999. The exchange deals mostly with fixed-income

securities. It is expected that the stock exchange will grow and become more important and visible.

Bhutan

Bhutan

The widespread use of money in Bhutan only began in the early 1960s with the growth of trade

with India and the initiation of bilateral development aid from India to Bhutan. Even though

Bhutan's economy is highly

Trade (expressed in billions of US$): Bhutan

Exports Imports

1975 N/A N/A

1980 .017 .050

1985 .022 .084

1990 .068 .078

1995 .103 .112

1998 N/A N/A

SOURCE: International Monetary Fund. International Financial Statistics Yearbook 1999.

Exchange rates: Bhutan

ngultrum (Nu) per US$1

Jan 2001 46.540

2000 44.942

1999 43.055

1998 41.259

1997 36.313

1996 35.433

Note: The Bhutanese ngultrum is at par with the Indian rupee which is also legal tender.

SOURCE: CIA World Factbook 2001 [ONLINE].

underdeveloped the price of consumer goods has remained fairly stable. The average percentage

change of prices each year was only 10 percent between 1990 and 1998. Total international

currency reserves by major Bhutanese holders (mainly the Royal Monetary Authority, Bank of

Bhutan, and Bhutan National Bank) rose dramatically in value from US$106.9 million in 1993-94

to US$218.2 million in 1997-98.

Two banks operate in the country: the Bhutan National Bank has offices in Thimpu and a branch

in Phuentsholing, and the Bank of Bhutan has branches in the country's main centers. No restrictions

are placed on the quantity of currencies that can be taken into Bhutan although they are limited to

the main international currencies. In the late 1990s Bhutan National Bank was partly privatized when

the government sold 40 percent of its shares to Citibank and the Asian Development Bank; the

government now owns only 27 percent of the bank. Bhutan has a stock exchange but it is not open

to external investment.

Bermuda

Bermuda

The currency of Bermuda is the Bermuda dollar. There are 100 cents to

the dollar. The Bermuda dollar is pegged to the US dollar on a 1-to-1 basis.

Both currencies are equally acceptable at all establishments. The US dollar

is therefore the currency of choice since any remaining cash is exchangeable

almost anywhere in the world; a situation which is not true for the Bermuda dollar.

Ensure you change all Bermuda currency, other than that required for novelty purposes,

into US dollars before you leave Bermuda. There are no currency restrictions

in force when

leaving Bermuda.