Brazil‘s Central Bank started to receive contributions to its proposal for regulating the country’s new foreign exchange law. The deadline is July 1 of this year. According to the monetary authority, the proposed regulation provides a free format for foreign exchange operations, simplifies the classification of foreign exchange operations, and reduces asymmetries in requirements for opening and operating non-resident accounts in Brazilian reais.
The cenbank stated that the proposal does not change the current rules for accounts in foreign currencies held in Brazil. “The proposals submitted for public consultation aim at greater agility, simplicity, and transparency in the foreign exchange market operations, improving the business environment, with direct benefits to companies and citizens,” it said.
In the future, the Central Bank intends to open new forum opportunities to discuss the regulation of foreign capital in the country in the modalities of direct investment, credit operations, and the financial and capital markets.
In December 2021, President Jair Bolsonaro sanctioned the law to modernize the country’s foreign exchange regulation. The rule simplifies the entry and exit of dollars from the country and eliminates restrictions for exporters to use their resources freely. It may also expand the space for fintechs to operate in the foreign exchange market, among other measures.
The new law will come into effect on December 31 this year. The Central Bank informed that it will carry out all the infra-legal regulations until that date. From 2023 onwards, relevant discussions will be carried out on topics that the new legislation may adjust.
Among the regulations that will be in place for 2023 are the improvement of the interbank foreign exchange market rules, private clearing of credits in this area, and deadlines for operations in this market.
(Translated by LABS)