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

BRASILIA (Reuters) – Brazil’s Finance Minister Fernando Haddad mentioned 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 yr.

“There isn’t any dialogue about altering the alternate price regime in Brazil or rising taxes for this goal,” Haddad informed reporters.

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

The Brazilian actual depreciated by greater than 20% final yr, 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 improve in threat premiums on Brazilian belongings after the federal government unveiled a fiscal containment bundle that dissatisfied buyers.

After assembly with President Luiz Inacio Lula da Silva earlier on Monday, Haddad mentioned the discussions centered on planning for the yr, with the precedence being the approval of the 2025 funds proposal.