Ana Nicolaci da Costa, Sujata Rao – Reuters, 09/21/2012
Brazil threatened on Friday a further clampdown on speculative foreign capital, firing a warning shot in a “currency war” its finance minister blamed on money-printing by Western central banks.
Finance Minister Guido Mantega said Brazil would not allow its real currency to strengthen too much and was prepared to take all steps to prevent this, including “those we adopted in the past”.
“If necessary… we have (the option) of short-term capital taxes,” he told reporters on the sidelines of an Economist conference in London.
