Brazil’s finance minister says that the recently-imposed capital inflows tax has been successful and that Brazil will announce a new measure. Emerging markets have been struggling under a tsunami of hot money flows, spurred in large part by record low interest rates in the developed world. Russia said earlier today that they are exploring “soft” capital controls.
The latest tax is 1.5% on ADRs or American Depository Receipts. ADRs are shares that trade in US exchanges, priced in dollars.