Brazil: Currency War Salvo
Post on December 30, 2010, 1:48 pm by the-victoria-law-group 1 Comments
Just as Brazil is getting all of the attention, and raves abouth their economy and foreign investments, they go and do something to “blow the glow”. According to the Financial Times, Brazil has imposed fresh controls on inflows of foreign capital in an escalation of what Guido Mantega, finance minister, recently described as a “currency war” between the world’s leading economies. Mr Mantega, speaking in BrasÃlia after markets closed on Monday evening, said Brazil would increase to 4 per cent a financial transactions tax (IOF) on money entering the country to invest in fixed income instruments.