Brazil's Government Prepares New Forex Measures -Report
Thu, Nov 5 2009, 11:09 GMT
http://www.djnewswires.com/eu
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SAO PAULO (Dow Jones)--The Brazilian government is evaluating further measures to slow dollar inflows and contain the appreciation of the Brazilian real, local newspaper Folha de S. Paulo reported Thursday.
According to the report, which cited unnamed government sources, among the measures under consideration is an overseas sovereign bonds issue denominated in Brazilian reals and a change in rules that would allow foreign equities investors to deposit guarantees overseas.
The report comes one day after Finance Minister Guido Mantega told reporters that the government is not looking to further measures to contain the real.
In October, the Brazilian government imposed a 2% tax on foreign investment in local equities and fixed-income assets, in an attempt to slow the upward march of the Brazilian real against the dollar.
So far this year, the local currency has appreciated approximately 35% against the U.S. dollar.
-By Rogerio Jelmayer, Dow Jones Newswires; 5511-2847-4521; rogerio.jelmayer@dowjones.com
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(END) Dow Jones Newswires
November 05, 2009 06:09 ET (11:09 GMT)
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