Brazil Imposes Tax On FX Derivs

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.

Click here for the story from The Wall Street Journal.

Click here for additional coverage from Reuters.