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Brazil Tax Change Could Boost Sinking Currency

Posted on 05 June 2014

The Brazilian government on Wednesday took steps that could shore up its sinking currency, in a move possibly aimed at controlling inflationary pressures. Brazil’s Finance Ministry reduced the reach of its 6% IOF financial-transactions tax in a bid designed to encourage local firms to obtain financing abroad. The IOF now applies only to international loans and bonds with maturities of 180 days or less, down from 360 days.
Analysts say the measure will give companies, particularly smaller ones, greater ability to raise cash abroad. In bringing foreign currency into the country, they’ll create more demand for Brazilian reais………………………………………..Full Article: Source


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