This week, the Wall Street Journal reported that the Brazilian government has now imposed a two percent tax on foreign investment entering Brazil, hurting the local stock markets.

Brazil has weathered the global economic crisis much better than other countries, and the Ibovespa index rose 70% since March. The government has imposed tax on stock market purchases before, at 1.5% in 2008. The move this October is due to the strong real, which is hurting Brazilian exports.

However, experts say the move is already been detrimental to Brazilian stock markets and small and medium-sized companies looking to get onto the market in Brazil. They also say the move could threaten Brazil’s relatively new investment-grade status.

But like things in Brazil sometimes go, it seems investors may have already discovered a jeitinho to get around the tax. Investors looking to buy equities in Brazil could buy the equivalent stock in New York, cancel the purchase, and as a result get the equivalent Brazilian stock.

To read more, see the WSJ article here.