By Ana Nicolaci da Costa and Sujata Rao
LONDON, Sept 21 Brazil threatened on Friday to
impose taxes on speculative foreign capital, firing a warning
shot in a "currency war" its finance minister blamed on
money-printing by Western central banks.
Guido Mantega said Brazil would not allow its real currency
to appreciate excessively and was prepared to take all steps
"such as those we adopted in the past".
"If necessary, if the inflows are even stronger, we have
(the option) of short-term capital taxes that could (be
introduced)," Mantega told reporters on the sidelines of an
Economist conference in London.
"We will adopt new measures in terms of taxing of financial
Brazil shocked investors in October 2009 by imposing taxes
on some categories of foreign investment flows to local stocks
and fixed-income securities. Back then, it said some of the
flows constituted hot money and were harming the economy.
Mantega has been one of the foremost critics of the asset
buying programmes of 'quantitative easing' that Western central
banks have been using to shore up their economies, accusing them
of in effect devaluing their currencies to boost