Brazil Eases Exporters’ Woes

Brazil is to allow its exporters to keep up to 30% of their earnings abroad in order to lower their costs and help to weaken a strong real. Previously, companies were obliged to repatriate 100% of their export earnings. The government also announced it was suspending the CPMF financial transactions tax on funds held abroad. The package of exchange-rate measures announced by the finance ministry has been welcomed by the country’s large exporters such as steel-maker Gerdau, but they also say the measures do not go far enough to help domestic industry stay competitive in the global market.