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Mr. Mantega insisted in an interview last week that he possessed the "weapons" needed to bring the real under control

Guido Mantega increased tax on financial transactions on foreign investment in 6pc 4pc fixed income securities.

Change is intended to stop further appreciate Brazil, the real worth almost 60 cents today, from 25 cents coin to the it end of 2008.

Goldman Sachs Investment Bank has stated that the real is more euphoric currency in the world.

However, Timothy Geithner, u.s., Finance Minister warned on Tuesday that "no country in the world can devalue its prosperity".

Announcement of Mr. Mantega, after the markets closed Monday evening was just two weeks after that it has doubled to 4pc 2pc tax.

But the real continued to strengthen, appreciating 1. 6pc within ten days after the first tax increase before other rumors have started to push down slightly.

A former Governor of the Central Bank of the Brazil, speaking after the first announcement, compared policy to "shield yourself from the Sun with a sieve.

Bank of America was equally dismissive, suggesting that the Brazilian Government was engaging in "a failed war" and that further action might increase volatility.

But Mr. Mantega insisted in an interview last week that he had needed to curb the real "weapons".

The Brazil is an interesting target for foreign investment because of the demand for improved infrastructure combined high interest rates.

Influx of American dollars have slowed this month after $16bn in September after the share offering by Petrobras Brazil.

A spokesman for the Ministry of Finance of the Brazil said that Mr. Mantega will not witnessed Korea South this week, the g-20 finance officials meeting preferring to remain sat House to concentrate on the fight against the real.

Mr. Mantega said last month that the world was "in the middle of a war of international currency" that he feared would seriously damage Brazilian exports.

His comments have been a hot topic in the meeting of the IMF in Washington earlier this month.

Dominique Strauss-Kahn, Director General IMF, said that he wanted to see the creation of "overflow reports" showing the impact on others to help increase the political stability of the country.

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