Now Brazil Intervenes To Strengthen The Dollar

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Last Friday, the Brazilian Government denied allegations that it would impose a new tax on foreign fixed income investments and equities, in hopes of cooling off its surging currency and speculation in its markets.

But today comes word that the government will do just that.

Bloomberg: “Brazil will impose taxes on purchases by foreign investors of real-denominated, fixed-income securities and on purchases of stocks, Finance Minister Guido Mantega said today. The measures are being taken ‘to avoid an excess speculation in the stock market and in capital markets,’ he told reporters in Sao Paulo.”

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Brazil’s intervention follows a recent move by some Asian nations to prevent their currencies from surging.

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