Brazil taxes short dollar trades to weaken Real

In an effort to keep its currency from appreciating to unwieldy levels, the Brazilian government will tax short trades in U.S. dollar derivatives -- a new weapon in what its finance minister called a "bigger arsenal" to keep the real in check.

The real has been trading at a 12-year high vs. the dollar. The high relative value threatens the Brazilian export market.

This latest round of currency controls includes a 1% tax on short dollar futures positions that have a notional value of more than $10 million. The tax could go as high as 25%.

Brazil to impose 25 pct tax on derivatives-gazette

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