Wed, 06 Jun 2001, 11:33pm EDT

Brazil Shortens Currency Trading Hours Due to Energy Cutbacks By Romina Nicaretta

Sao Paulo, June 6 (Bloomberg) -- The Brazilian central bank has shortened the hours for financial institutions to register their dollar spot transactions since Monday because of an electricity shortage.

Financial institutions buying U.S. dollars in the interbank spot currency market have to register their transactions by 4:30 p.m. instead of 6 p.m. Dollar sellers have to register their transaction by 5 p.m. instead of 7 p.m., the central bank said.

The central bank shortened registration hours to force financial institutions to reduce electricity usage, as a drought and insufficient investments have reduced the country's electricity supply. The bank's action is to comply with a government plan to reduce electricity use in the northeast, southeast and midwest of Brazil over the next five months.

About three fourths of the country's 170 million population have been forced to reduce power consumption by 20 percent on average or be subject to fines or power cuts for up to six days.

http://quote.bloomberg.com/fgcgi.cgi?ptitle=Securities%20Firms%20News&b1=ad_bottom1&br=blk&tp=ad_topright&T=wealthstory.ht&s=AOx6RUhZ6QnJhemls

-- Martin Thompson (mthom1927@aol.com), June 06, 2001