Brazil Removes Tax on Currency Derivatives to Boost Exports
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Brazil’s President Dilma Rousseff removed a tax on currency derivatives for exporters as the country struggles to remain competitive in the face of a strengthening real.
The so-called IOF tax for exporters will be eliminated on condition that their exposure to currency derivatives, used to hedge against exchange-rate fluctuations, does not exceed 1.2 times the value of their previous year’s exports, according to a decree published today in the official gazette.