The Finance Minister, Guido Mantega, announced after market hours Wednesday that Brazil was extending to 720 days from 360 days its recent 6% financial operations, or IOF tax, on local institutional dollar borrowing from offshore subsidiaries in an attempt to cut into credit expansion and dollar inflows.
Chinese financial institutions could just as easily be acquiring dollar debt through offshore banks or other global money centers, mainly through London.
This effort is set to accelerate over the next two years if the New York State Public Service Commission approves a multi-million dollar feasibility study of offshore wind power near New York City.