Brazil has introduced a steep tax on foreign exchange derivatives, The Wall Street Journal reports. The government is imposing a 1% tax on trading in currency derivatives that may be increased to 25% in the future, adds Reuters.
Monetary authorities will also impose other conditions on transactions, including raising deposit requirements to back the trades. In less than a year, Brazil has increased the tax on foreign investment in bonds three times and has also raised a tax on foreign borrowing and made it more expensive for brokers to bet against the dollar.
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