1.   ARGENTINE stocks fell to their lowest this year after spending cuts and tax increases announced by Brazil failed to convince investors that it can avoid devaluing the real.

2.   Brazil has a policy of gradually devaluing the real to keep pace with the inflation rate.

3.   Brazilian shares have been pummeled on concern that a currency crisis in Thailand and the Philippines could lead Brazil to devalue the real.

4.   Brazilian stocks were little changed after the government indicated it would maintain its foreign exchange policy and not devalue the real.

5.   Fernandez said he was a happy man these days, because he anticipated last year that President Fernando Henrique Cardoso of Brazil would devalue the real after his re-election.

6.   In addition, Franco reiterated that the government has no plans to devalue the real faster despite calls by many exporters to do so.

7.   Investors have been worried that Brazil could be forced to abandon its strong-currency policy and devalue the real.

8.   Investors fear that if the real is devalued, many will pull money out of stocks across the region.

9.   Last week, stocks in several Latin American nations suffered on speculation that Brazilian authorities might devalue the real.

10.   Speculation has mounted in recent weeks that Brazil will be forced to devalue the real to reduce its current account deficit.