Brazil restricts currency short selling
07 January 2011 Rio de Janeiro
Image: Shutterstock
The Brazilian Government has announced that it is imposing a tax on short positions in US dollars, in an attempt to reduce the strength of the country's currency.
The real gained almost five per cent on the US dollar in 2010 and has jumped 14 per cent since May last year. Exporters and manufacturers have complained that speculators are costing them sales overseas.
The measures appear to be working; the real has already weakened slightly.
The real gained almost five per cent on the US dollar in 2010 and has jumped 14 per cent since May last year. Exporters and manufacturers have complained that speculators are costing them sales overseas.
The measures appear to be working; the real has already weakened slightly.
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