New Legal Framework for Foreign Exchange

New Legal Framework for Foreign Exchange

The bill facilitates the use of Brazilian currency in international transactions.

 

 

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What is the new legal framework for foreign exchange?

The bill of the new legal framework for foreign exchange facilitates the use of Brazilian currency in international transactions The bill was approved by the House of Representativves, and is awaiting a vote in the Senate *. Know the proposed changes.


Cash Values when traveling

The text proposes to increase the limit of cash that each passenger can have with him when leaving Brazil or entering it. Instead of the current R$ 10,000, it will be US$ 10,000 or the equivalent in another foreign currency.

 

Account in foreign currency

The bill maintains the Central Bank as the autarchy responsible for regulating who can hold a foreign currency account in Brazil and what the prerequisites are, creating the possibility for the BC to authorize individuals to have dollar accounts in Brazil.

Foreign exchange contract

The bill also limits the amount that the bank or foreign exchange broker is required to deposit with the Central Bank, if a foreign currency purchase contract is canceled.

 

Export money

The bill allows exporters to use resources held abroad and from exports, for loans or loan agreements.

 

Payment orders in reais

The proposal aims to increase the acceptance of the real in other countries.  One of the initiatives is the inclusion of permission to receive third parties's payment orders from abroad, from accounts in Brazilian real held in Brazil, through foreign banks.


Remittances Abroad

Companies that remit money abroad as profits, dividends, interest, payment of royalties, and other regulated purposes may do so without the need to register with the Central Bank, as is currently the case. The only requirement will be to pay taxes.

 

Supplementary property tax

The bill repeals two other devices. One of them is the collection of supplementary tax on the income obtained from the sale of real estate, when the owner is an individual or legal entity or is resident or headquartered abroad.

Leasing

As for leasing, the project eliminates the need for registration with the Central Bank, as well as eliminates the need for authorization for the assignment of the leasing agreement to an entity domiciled abroad.

 

Regulation

Several attributions of the National Monetary Council (CMN) are transferred to the Central Bank, such as the regulation of foreign exchange operations, of foreign exchange futures contracts used by the Central Bank to avoid speculation with the real (swaps), and the organization and supervision of brokerage firms, stock exchange, and foreign exchange.

 

Statistics

The proposal allows Central Bank requesting information from residents to compile official macroeconomic statistics. The text determines the confidentiality of individual information, which may be provided to interested parties, without identification of the owner, for research and study purposes.


Clients Documentation

Regarding the relationship of institutions authorized to operate in the foreign exchange market, the bill prohibits them from demanding documents and data that already exist in their databases.

* As of the date of publication of this content, the bill has not been voted on in the Senate.
Note: This content is not intended as advice or any form of investment. Merely informative content. 
Image Credit:  Unsplash
Source:  Agência Câmara de Notícias 

 

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