Brazil is likely to let the value of its currency, the real, continue to float in the free market, it emerged as the country's president and central bank chief met with IMF officials here this weekend.
The President, Mr Fernando Henrique Cardoso, believed that the decision on Friday to let the real float without government intervention was "very correct," one Brazilian minister said.
Mr Cardoso "does not foresee any special changes in the area of exchange rates," the telecommunications minister, Mr Pimenta da Veiga added.
The new head of Brazil's central bank, Mr Francisco Lopes, also signalled his support for the new monetary policy.
"The reaction of the financial markets" to the move indicated "that the country is close to being able to operate a free exchange rate policy," Mr Lopes said.
The main Sao Paulo stock index skyrocketed 33.4 percent by the end of Friday pulling up other major markets along with it.
Officials decided to abandon the traditional policy of propping up the real within a limited trading band after huge sums of money were sucked out of the country in a matter of days.
