Brazil Loosens IOF

Brazil Loosens IOF

Brazil Economy & Policy Corporate & Sovereign Strategy

Looking to strengthen its currency, Brazil's government has altered the 6% IOF tax, which now applies only to corporate loans of up to one year, instead of up to two years. The move follows a lifting of the tax from advance payments of up to five years received by exporters. “By cutting the IOF tax on external borrowings today, the government is showing concerns about the levels of hard currency liquidity in the FX markets, which either due to seasonal factors or negative sentiment towards the

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