# (BRL/USD) Real Sells Off as Brazil Taxes Remittances to Boost Budget - Bloomberg

> 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.

- Date: 2025-05-22 · published 2025-05-22T12:00:00.000Z
- Category: policy · region Brazil · magnitude medium
- Page: https://feedsoft.ai/events/24891-brl-usd-real-sells-off-as-brazil-taxes-remittances-to-boost-budget-bloomberg
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md)

## Why it matters

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.

## Read by commodity

- USDBRL: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2024-11-28 | [(USD BRL) Brazil’s Real Drops to All-Time Low as Spending Cuts Fall Flat - Bloomberg](https://feedsoft.ai/events/12461-usd-brl-brazil-s-real-drops-to-all-time-low-as-spending-cuts-fall-flat-bloomberg.md) | +1.7% | +5.6% |
| USDBRL | 2017-05-19 | [For These Die-Hard Investors, Now Is the Time to Buy Brazil - Bloomberg](https://feedsoft.ai/events/4357-for-these-die-hard-investors-now-is-the-time-to-buy-brazil-bloomberg.md) | -2.8% | -2.7% |
| USDBRL | 2021-07-07 | [Brazilian Real Stalls on Plans for Dividend Tax Hike, Finds Support on Data](https://feedsoft.ai/events/9911-brazilian-real-stalls-on-plans-for-dividend-tax-hike-finds-support-on-data.md) | -0.5% | +1.1% |
| USDBRL | 2025-01-22 | [Brazilian government officials renew fiscal balance pledge](https://feedsoft.ai/events/26713-brazilian-government-officials-renew-fiscal-balance-pledge.md) | -2.8% | -5.2% |
| USDBRL | 2024-12-02 | [Lula Ignores Aides and Sparks Market Rout That Threatens Economy - Bloomberg](https://feedsoft.ai/events/12458-lula-ignores-aides-and-sparks-market-rout-that-threatens-economy-bloomberg.md) | +1.3% | +3.4% |

## Sources

- bloomberg.com: https://www.bloomberg.com/news/articles/2025-05-22/real-sells-off-as-brazil-taxes-remittances-to-shore-up-budget

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.