Surging back from overseas funds, the massive real appreciation of local currency, foreign trade surplus is declining ... ... not contain himself to the Brazilian government finally reveal their "taxation" a move in the blocking of overseas speculative capital while suppressing excessive currency appreciation.
Brazilian Finance Minister Guido Mantega announced today that right into the Brazilian stock market and the purchase of Brazil's fixed-income securities of foreign capital levy 2% of the financial tax, designed to "avoid excessive stock market and capital market speculation."
Mantega said that the excessive international capital flows will lead to excessive real appreciation, which hurt their export performance, and further exacerbate demand for imports. Mantega also pointed out that although the measure hardly drive the real devaluation, but at least be able to slow the appreciation of speed, and to prevent the Brazilian capital market bubble.
In fact this is the Brazilian government to scrap the tax measures in the financial recovery, but the intensity obviously slightly larger. In October last year, the financial crisis against the backdrop of outbreak, the Brazilian government had announced the cancellation of the so-called financial operations tax (IOF), which include the abolition of fixed-income funds, foreign investment in specific areas of tax levy of 1.5% and the abolition of foreign currency loans of 0.38% tax.
However, this year with the gradual stabilization of financial markets and economic conditions improve, investors risk appetite once again just around the corner. Data show that total this year, Brazil Sao Paulo Stock Exchange Index rose 74%, the continuous influx of international capital has led to a substantial appreciation of the Brazilian currency. Since early March, the Brazilian real against the U.S. dollar has appreciated 40%, only in the past month on the rise around 5.3%, the country's central bank began early in May this year, buying U.S. dollars to resist currency gains, but still with little success.
RBC Capital Markets research director for emerging markets, followed by Nick Chamie wrote in a report, Brazil, 2% of the financial tax levy covers the stock market and fixed income markets, its restrictions on foreign capital inflows is greater than previously expected, and "is likely to have real and negative impact on the local bond yield curve, "but he thought real," in the medium term will continue to rise. "
But there are also market participants stated publicly that the Government of Brazil, some of the tax act, "not hesitate" to mean, in the short term, the measure may help alleviate the real uptrend, but the market will create new investment strategy, "bypass" Tax , when the impact on the money market will be lost. |
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