MORE: Brazil Axing Tax on Foreign Investment in Fixed Income

The measure, which is being implemented in light of reduced liquidity, takes effect tomorrow, Finance Minister Guido Mantega tells reporters in Brasilia after meeting with President Dilma Rousseff. * Measure won’t hurt tax revenue situation, can be reinstated if needed * Brazil not facing liquidity shortage * Brazilian companies are able to secure financing as needed * Brazil currency interventions becoming less frequent; dollar gains are a global phenomena * NOTE: BRL has weakened 5.5% against dollar in past month, fastest depreciation among major LatAm currencies after Chile * NOTE: Mantega said May 29 weakened currency makes Brazil more competitive * NOTE: Brazil will act if real weakens more than peers, central bank Director Aldo Mendes said today * NOTE: 1Q GDP +0.55% QoQ; est. +0.9% (prior +0.6%) * NOTE: April IPCA inflation +0.55% MoM; est. +0.48% (prior +0.47%)