Brazil’s Derivative IOF Could Encourage Global BRL

Brazil’s Derivative IOF Could Encourage Global BRL

Brazil Bonds Economy & Policy Corporate & Sovereign Strategy

Neither bankers nor investors see the Brazilian government’s new IOF tax on derivatives diminishing the attractiveness of overseas issuance by the country’s companies. Indeed, the move may be another reason for accounts to migrate to the global BRL market as they look to avoid the increasingly onerous tax burdens being imposed onshore. “If the gap we’re seeing between offshore and onshore levels remains, it could make global BRL issuance more attractive [to investors],”

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