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