On 16 March, the Brazilian real (BRL) traded at 1.81 per USD, which was 5.1% weaker than the level registered on the same day the previous month. The mid-March loss contrasted February's 1.7% rise, when the BRL traded at 1.72 per USD. In annual terms, the real has lost 10.6% compared to the same month last year. On the other hand, on a year-to-date basis, the real has gained 3.1% on the back of massive inflows from investors seeking higher returns in emerging markets. Recent weakening of the real can be related with the efforts of the Brazilian government to curb excessive capital inflows, which are mainly geared towards short-term investments in Brazil's financial markets. On 12 March, Finance Minister Guido Mantega extended the 6% financial operations tax (IOF, Imposto sobre Operac?es Financeiras) on short-term foreign loans and bonds of maturity to up to five years. Moreover, the Brazilian Central Bank (BCB) also stepped up measures to weaken the local currency and, on 29 February, held a reverse currency swap auction in which it bought U.S. dollars, bringing down the value of the real to 1.72 per USD.
Brazil Exchange Rate
Brazilian real depreciates as the government extends IOF tax
March 16, 2012
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Brazil Economic News
October 25, 2016
Brazil’s current account balance improved in September, continuing to build on the considerable gains made over the past year.
October 19, 2016
At its 19 October meeting, the Central Bank’s Monetary Policy Committee (COPOM, Comite de Politica Monetaria) decided to cut the benchmark SELIC interest rate for the first time in four years, lowering it from 14.25% to 14.00%.
October 18, 2016
Retail sales (excluding cars and construction) fell 0.6% in August from the previous month in seasonally-adjusted terms.
October 7, 2016
Consumer prices in September increased 0.08% over the previous month, the lowest rise since July 2014.
October 4, 2016
In August, industrial production plunged 3.8% over the previous month in seasonally-adjusted terms, which significantly contrasted the 0.1% expansion recorded in July and marked the worst result since January 2012.