Brazil Scraps Foreign Investment Tax as Real Hits Four-Year Low

Brazil will eliminate its foreign investment tax on fixed income after the real had the worst performance in Latin America in the past three months, Finance Minister Guido Mantega said today.

“We were worried about excess liquidity and we have always criticized that,” he said after meeting with President Dilma Rousseff. “Now the market is more regular, more normal, which allows us to remove this obstacle we had placed.”