SAO PAULO Dec 4 Brazil's central bank on
Tuesday eased export financing rules, in a move analysts said
was designed to attract more dollars to the country and support
The central bank narrowed the scope of a hefty tax levied on
exporters who receive advance payment for the goods they sell
According to the new rules, Brazil will no longer tax export
prepayment operations of up to five years, a central bank
spokesperson said. Before, only prepayment operations of up to
360 days were exempt of the 6 percent financial tax known as
The real added to gains after the measure was
unveiled in a central bank statement. It last traded 0.7 percent
stronger at 2.1037 per dollar.
The announcement on Tuesday almost completely reverses the
central bank's March decision to tax export prepayments longer
than 360 days. A member of the central bank board then said the
move was aimed at averting excessive appreciation of the real.