Brazil cools down hot investment money, says Cayman portfolio manager
Uploaded on Apr 5, 2011 (178)
21 March 2011
Fueled by the infrastructure buildout needed to host the 2014 World Cup and the 2016 Summer Olympics, Brazil is seeking to cool down investment money pouring into the country to prevent the economy from overheating.
As the largest economy in South America with an expected growth of 5.5 percent this year, while the US and Western Europe continue to limp along, Brazil has become the Cinderella story among investors seeking returns.
In an effort to cool down hot investment money, Brazil has raised the reserve requirements, which become effective on April 4. They have also taxed capital inflows and require a 60 percent cash deposit on bank short positions.
Close Brothers investment manager Nancy Euvrard, who recently gave a guest lecture at the International College of the Cayman Islands, explains how the wave of investment money rushing into a country can also drag it down, if it is not careful.
---
Marketing Director/Photojournalist for Executive Guest Lecture Series: Shurna Robbins
