Brazil’s finance minister guidelines out mountain climbing taxes to curb greenback outflow

BRASILIA (Reuters) – Brazil’s Finance Minister Fernando Haddad stated on Monday that the federal government has no plans to boost the monetary transactions tax, often called IOF, to handle U.S. greenback outflow following the sharp depreciation of the Brazilian foreign money final 12 months.

“There is no such thing as a dialogue about altering the trade fee regime in Brazil or growing taxes for this function,” Haddad instructed reporters.

He described the U.S. greenback’s current actions as a part of “a pure lodging course of” following stresses brought on by each exterior and home elements.

The Brazilian actual depreciated by greater than 20% final 12 months, rating among the many worst-performing rising market currencies.

The decline was pushed by the worldwide strengthening of the U.S. greenback following coverage guarantees by President-elect Donald Trump, coupled with a steep enhance in danger premiums on Brazilian property after the federal government unveiled a fiscal containment bundle that upset traders.

After assembly with President Luiz Inacio Lula da Silva earlier on Monday, Haddad stated the discussions targeted on planning for the 12 months, with the precedence being the approval of the 2025 funds proposal.