Because massive US dollars emerge Brazil, will cause the Reals to rise again once more to US dollar exchange rate before September, 2008 financial crisis erupts the level, the Brazilian Government promotes the measure continuously in the near future, will intend to the impediment Reals exchange rate to continue to climb.
Since this year, resumes the growth with steady steps along with the Brazilian economy, enters Brazil's US dollar capital to continue to increase, especially issues additionally stock financing after September Brazil Petroleum Company, massive US dollars enter the Brazilian market. The digit which on October 6 issued according to the Brazilian Central Bank demonstrated that in September altogether has 16,716,000,000 US dollars to flow in Brazil, has been the Brazilian Central Bank carries on this statistical since 1982 in the odd-numbered month highest amount; From this, same month Brazil US dollar net current enters amounts to 13,726,000,000 US dollars, was higher than same time last year the level far.
Although Brazilian Central Bank daily two entering the market purchase US dollar prevents the Reals the revaluation tendency, but the Reals currency value recently still repeatedly rose. On September 15, the Reals to US dollar exchange rate is 1.708:1, since has been last November the maximum. On October 5, the Reals achieves 1.675 to US dollar exchange rate :1, is the financial crisis erupts for two year maximum level.
The Reals revalues fast, to is being restored the Brazilian industry not less than is the blow to the head. Brazil Minister Guido · Munder adds indicated at the end of September in Sao Paulo that Brazil has taken the measure, absorbs in the market through the use foreign exchange reserve and the sovereignty fund surplus US dollar, maintains the stabilization of exchange rate. He emphasized: “Brazil has more than 2700 hundred million US dollar foreign exchange reserves, has ability to prevent the Reals to revalue excessively.”
On October 4, Munder will add the announcement, Brazil will start from 5th, to increase in view of the foreign investor in the Brazilian regular earnings investment financial operation tax, the tax rate from 2% increases 4%. He emphasized: “US dollar will decline to the Reals exchange rate will affect our export. Therefore, we decided enhances tax revenue.”
In last November when the Reals revaluation anticipated surged upward, Brazil through the collection finance operation tax, suppressed the capital inflow Brazil capital market short-term arbitrage, obtained the good results, the Reals receded gradually to US dollar exchange rate to the beginning of May 1.881:1 level. Now, the Brazilian Government hoped obviously enhances to the arbitrage foreign capital taxation, the attack short line “the hot money” to the Brazilian market interest, by stable Reals currency value.
The announcement raises financial operation tax rate one day later, the Brazilian Government knocks out the fist once more, is authorized Ministry of Finance to purchase the total amount to reach 10,700,000,000 US dollars US dollar foreign exchange ahead of time, before repays the bond which 2014, expires, but Ministry of Finance is only before the bond which in two years expire prepares by the authorization to repay the fund. The financial circles public figures believed that this act will enlarge Ministry of Finance to deal with the exchange rate question ability.
For all this, the Reals has not receded accordingly to US dollar exchange rate, still moved in 1.7:1 top digit levels. Munder adds to the media stressed whether the policy effective isn't a one-day effort, but the Brazilian Government has ability to control the exchange rate level.
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