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Brazil's real sold off on Thursday after the government announced higher IOF financial transaction taxes, including a 3.5% levy on foreign currency purchases, remittances and offshore fund transfers. The finance ministry expects the measures to raise 20 billion reais in 2025 and 41 billion reais in 2026.
A weaker real raises the cost of Brazilian feed and grain exports in dollar terms and can shift export selling and farm margins. The tax also signals fiscal stress that keeps the currency volatile.
bloomberg.comMartha Beck, Felipe SaturninoMay 22, 2025After 12 past bullish policy events, Brazilian Real (BRL per USD) moved a median +1.5% over 5 sessions (58% higher; middle half -1.1% to +2.0%), and +2.3% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
