Brazil Taxes Inbound Speculative Funds

in an unprecedented move for the South American country, Brazil is planning to impose a tax to inbound investment to slow down the climb of the real. It is going to be interesting to see if this move is a wise choice by Brazilian authorities and if it can reduce speculation without damaging Foreign Direct Investment. The tax on capital inflows, which takes effect today, will take the form of a 2 per cent levy on foreign investment in the stock