Raissa Florence, from Oz Exchange, evaluates the impacts of IOF discharge and tax instability and indicates strategies to reduce gearbox risks
Political and fiscal instability has led national companies to seek protection outside the country. The 33 -year -old director and partner said in an interview with Poder360 that the lack of predictability encourages the opening of offshores to allocate resources and escape the internal volatility. The movement reflects the loss of confidence in the business environment, which also removes the foreign investor.
One of the factors that aggravates economic uncertainty is the increase in the tax rate of IOF (Tax on Financial Operations). Because of the difficulty in closing Public accounts, the president’s government (PT) decided to raise the immediate effect tax. The exchange rate, being a highly sensitive and daily liquidity sector, has become the 1st revenue valve with the change promoted by, headed by.
The tax rate that focuses on exchange operations tripled. In 2017, it was 0.38%. In 2018, it rose to 1.1% and Today is 3.5%. The immediate effect is the enhancement of international transactions, affecting both importers and exporters and businesses dealing with recurring foreign currency payments such as software and digital services.
“This measure [que eleva o IOF] It had a great impact on the exchange market. IOF is a tax on insurance, credit, exchange and investments abroad. The increase covered virtually all types of currency operation, burdening companies and individuals. Recurring international payments such as software and invoices [documento comercial internacional semelhante a uma fatura, que detalha produtos ou serviços vendidos, os valores, condições de pagamento e informações do comprador e vendedor]were also affected. The government estimated to raise more than $ 10 billion with the adjustment, 80% of this exchange rate value. This tightens business margins and can be passed on to final prices ”said Raissa Florence.
Watch the full interview (16min58s):
The oz exchange. The company turns 25 in 2025, has moved more than $ 100 billion since its foundation and is among the 10 largest brokerages in Brazil.
Here are the highlights of the interview:
Poder360: How do you evaluate the impact of IOF rate change on the exchange market?
Rais Florence: This measure had a great impact on the exchange market. IOF is a tax on insurance, credit, exchange and investments abroad. The increase covered virtually all types of currency operation, burdening companies and individuals. Recurring international payments such as software and invoiceswere also affected. The government estimated to raise more than $ 10 billion with the adjustment, 80% of this exchange rate value. This tightens business margins and can be passed on to final prices.
Is Brazilian political and fiscal instability weighed in exchange operations? How is this reflected in companies and investors?
For sure. Investors are insecure in the face and goings of politics, as in the case of IOF. This instability reduces predictability, removes foreign companies and leads many Brazilian companies to open abroad branches to try to minimize the risk of Brazil.
What paths do you see to companies that need predictability in international operations?
The main advice is not trying to operate the dollar if this is not the company’s core business. The ideal is to adopt a exchange strategy: use hedge mechanisms [proteção cambial]make recurring closures to dilute risk and seek specialized partners. Being with information is essential in times of volatility.
In addition to the hedge, what other alternatives are there to mitigate risks?
Some companies are opening branches outside Brazil to operate directly in dollar, without exposure to the real. Others resort to Carry Trade: Capture international debt to low interest rates and invest in Brazilian securities with high interest rates. These are alternatives that require structure, but can increase predictability and protect operations.
These strategies generate costs. What is the weight of instability for companies and consumers?
The cost is intangible as it involves taxes, the image of Brazil and the increase of operations. Opening branch out can cost from $ 20,000 per year. Currency hedge has 5% to 6% rates, but mitigates oscillations that can be even higher. External debts, when well structured, also offer advantages.
Have all this uncertainty ever moved with the market?
Yes. Before the August tariff [quando os Estados Unidos aumentaram a tarifa de importação de produtos brasileiros para 50%]companies ran to anticipate. Then the operations came back, but with volatility. Today, much of the impact is already priced, but we follow in an unstable environment.
What trends do you estimate for the future of exchange in Brazil?
Digitization is the way. The OZ was a pioneer in the “FX As a Service” model [câmbio como serviço]which allows massive international payments simply via systems integration. The future of the exchange rate is on digital platforms with clear rates without hidden spreads, offering transparency and predictability to customers.
