Brazil Denies Increase in Tax of Foreign Exchange Transactions

Despite denial U.S. currency rose to highest level against the Brazilian real since January 26th.

By Lise Alves, Senior Contributing Reporter

SÃO PAULO, BRAZIL – Finance minister of Brazil, Henrique Meirelles, was quick to deny any discussion within the federal government to increase the IOF (tax over financial operations) for foreign exchange transactions. Despite the denial the U.S. dollar appreciated anyway to its highest level since January 26th.

"There is not even a decision whether it will be necessary to raise taxes. This statement [the IOF increase] is not correct,” Meirelles told journalists as he entered Congress for a meeting, according to government news sources.

“We are still closing the budget proposal for 2017 . . .

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