Brazil's Lula: No Foreign Capital Tax Under Study -Estado - WSJ.com

OCTOBER 16, 2009, 12:58 P.M. ET

BRASILIA (Dow Jones)--Brazil's government is not studying implementation of a new tax on incoming foreign capital to curb the appreciation of the local currency, the real, Brazilian President Luiz Inacio Lula da Silva said Friday according to the Estado news agency.

The president made the comments in response to local newspaper reports this week suggesting the government could implement a financial transactions tax on foreign investment in local equities and fixed income.

Brazil's currency has appreciated by more than 35% against the dollar so far this year under the impact of heavy flows of incoming foreign investment.



-By Gerald Jeffris, Dow Jones Newswires; (5561) 3335-0832; gerald.jeffris@dowjones.com"