SARNEY TEMPORARILY LEGALISES DLR PARALLEL MARKET Brazilian President Jose Sarney announced a move which temporarily legalises the purchase of U.S. Dollar currency in the parallel market, aimed at promoting imports of foreign goods. In a speech, Sarney justified his measure as a need to face "current well known difficulties to obtain foreign loans for the purchase of goods." The parallel market, although tolerated, is technically illegal. For the past year, the dollar in the parallel market is being sold at 25 to 100 pct above the official rate. Sarney's decision means that Brazilian importers of machinery and industrial equipment can buy dollar currency in the parallel market without having to wait for the issuing of an official order from the Banco do Brasil's Foreign Trade Department (Cacex). Sarney also announced measures to boost exports in an effort to strengthen the country's trade balance and alleviate the risk of a reduction of foreign loans for this sector of the economy. The president authorised the National Foreign Trade Council (CONEX) to resume operating as the ruling body of Brazil's trade policy, with participation of the private sector. The Council had been closed three years ago by the military government of former President Joao Figueiredo. Tomorrow, Brazil was due to fulfill payment of 15 billion dollars in short range credit lines, but its economic officials have suggested a 60-day extension in the deadline in order to seek a renegotiation with its creditors. Sarney told members of the Council that for Brazil it is a must to recover its annual trade balance surplus to the 12 billion dollars average recorded in 1984 and 1985, and which dropped sharply last year to 8 billion dollars. He attributed the poor performance of Brazil's trade balance in 1986 to protectionist moves by industrialised countries, the fall in the prices of basic goods and the crisis faced by several of Brazil's Third World trade partners.