1.   The economy failed the March test under the IMF agreement by failing to reach the target for foreign reserves.

2.   An initial disbursement was made in the summer but the program was put on hold in early September because of lagging privatization policies and dwindling foreign reserves.

3.   Analysts had expected foreign reserves to rise.

4.   Argentina, in contrast to Mexico, has a hefty pool of foreign reserves to cover its current-account deficit and defend its currency.

5.   As in October, Brazilian authorities have freely sold off foreign reserves to defend the real.

6.   Both worked in the foreign reserves trading area.

7.   A plunging peso and the draining of foreign reserves in December and January pushed the country to the edge of default on its foreign debts.

8.   Brazil saved on sparse foreign reserves by paying for Iraqi oil with goods and services.

9.   But because of the absence of foreign reserves, it will be hard to fulfill those popular expectations without considerable financial assistance from the West.

10.   But the policy turnaround has failed to stop the exodus of foreign reserves.