IOF Tax Zeroed to Protect the Real: Daily

By Anna Kaiser, Contributing Reporter

RIO DE JANEIRO, BRAZIL - The Brazilian government announced yesterday that it will zero the IOF tax (Tax on Financial Transactions), in an effort to protect the weakening real in response to the strengthening dollar. The U.S. currency closed at R$2.154 yesterday, the lowest exchange rate for the Brazilian real in four years.

The IOF tax for foreign transactions, established in July 2011, is a 1% tax on financial transactions known as derivatives, or "apostas," which are investments with expectations for positive performance by both foreign and Brazilian companies and banks in the . . .

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