BRASIL: Lula May Increase Foreign Investment Tax To Weaken Real.

BLOOMBERG/
Speculation has increased that the government may increase a recently enacted tax on foreign purchases of stocks and bonds to stem the real’s appreciation.
“Administrative measures can be announced at any moment,” said Paulo Nepomuceno of Coinvalores CCVM. The government plan reportedly is ready and will be announced if the real closes another day under 1.7 per dollar.
“We want foreign capital for direct investment, for stocks and for financial investments but without exaggeration, to make sure there will not be a bubble in stock markets or excessive valuation of the Brazilian currency,” said Finance Minister Guido Mantegna.