1. Calculate the overall balance for 1994 and 1998.

UV0986 Exhibit 1 BALANCE OF PAYMENTS: INTERPRETATION AND EXERCISE Brazil's Balance of Payments 1994 and 1998 1994 1998 International Transactions (USS MM) Balance of Payments for Brazil Current Accounts, nie (78ald) Goods: exports f.o.b (78aad) Goods: imports f.o.b (78aad) Trade Balance (78acd) Services: exports (78add) Services: imports (78aed) Balance on Goods & Services (78afd) Income received by Brazilian residents from abroad (78agd) Income paid to foreign residents (78ahd) Balance on Goods, Services& Inc (78aid) Current Transfers received by Brazil, n.i.e. (78ajd) Current Transfers given to foreign countries (78akd) 44,102 51,136 33,241 -57,739 4,908 7,631 -10,254 16,676 4,914 11,293 -24,531 2.202 2,577 -154 1,795 -359 Capital Account, n.l.e (78bcd) Capital Account, inflows (78bad) Capital Account, outflows (78bbd) 175 -2 488 113 Financial Account, nie (78bjd) Direct investment outflows (78bdd) Direct Investment inflows into Brazil (78bed) Basic Balance Portfolio investments abroad by Brazilian residents (78bfd) (3) 3,052 Portfolio Investments in Brazil by foreign residents, nie (78bgd) Other investments abroad by Brazilian residents (78bhd) (4) 4,368 Other investments in Brazil by foreign residents, nie (78bid) (2) -1,037 -2,721 3,072 31,913 -594 47,784 19,013 5,992 -34,379 -21,556 Net errors and omissions Capital Account Narrowly Defined Overall Balance (78cbd) -442 -2,911 Reserves and Related Items (79dad) Reserve Assets (79dbd) Use of Fund Credit and Loans (79dcd) Exceptional Financing (79ded) -6,598 16,302 -7,215 6,990 4,773 4,539 -133 750