• Categories
  • Archives

The End of the Dollar Black Market in Brazil

Brazil’s Central Bank informed that the unification of the commercial and tourist currency exchange markets (for businesses and individuals, respectively) and the new exchange regulation for exports will go into effect next week, in accordance with the norms approved by the National Monetary Council (CMN) last Friday, March 4.

Begining next Monday, March 14, there will no longer be limits on purchases and sales of dollar and other foreign currencies in Brazil. This will facilitate transactions for people who need to transfer funds abroad.


The current laws only permit individuals to conduct these transactions when they are going to travel outside the country and limit business transactions to US$ 5 million per operation.


The new measure, approved in a special meeting of the CMN, will help to deplete the black market exchange, known as the parallel market, which charges an average 20% premium over the official US dollar exchange rate.


Minister of Development, Industry and Foreign Trade, Luiz Fernando Furlan, said recently that Brazil should take advantage of the cheaper dollar and strengthen its reserves, boost trade and pay off dollar debts, especially companies in the private sector.


Furlan also announced that the government should announce measures to stimulate industrial and commercial activity at a meeting of the Industrial Development Council. The measures should go into effect soon and will reduce taxes for maritime ports and so-called dry ports.


Translation: David Silberstein
Agência Brasil

Tags:

  • Show Comments (1)

  • Guest

    Real Appreciation.
    How big is the dollar black market in Brazil? Will this new law have a significant effect on the brazilian economy and the real? Is this new law to crub flight of investment money from brazil?

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

A Brazilian Water-Sports Brand Gets a Place Under Global Sun

Mormaii, the main Brazilian neoprene surf clothes and water-sports brand, sells it products in ...

Maneuvers

Suddenly it was clear to me why we fall in love. A clumsy encounter ...

Brazil-Arab Trade Exceeding Expectations

Brazilian exports to the Arab countries grew 18% in the first months of this ...

Brazil Taps Money from US$ 207 Billion Foreign Reserves to Fund Exports

Henrique Meirelles, the president of Brazil's Central Bank (BC)announced Monday, October 6, that his ...

Progress Should Spare Brazil’s Severinos

In front of the luxury hotels on Porto de Galinhas beach in southern Pernambuco ...

Brazil’s Embraer Sells 50 Jets to US’s Republic Airways for US$ 2.1 Bi

Brazilian aircraft manufacturer Embraer said on Wednesday it has reached an agreement to sell ...

Brazil Investigates Ring Behind Death of American Nun

The landowner, Vitalmiro Bastos de Moura, arrested on Sunday, March 27, may not be ...

After Brazil Complaint Britain Decides to Take Back 1,000 Tons of Toxic Trash

Brazil has announced that it will lodge a formal complaint with the World Trade ...

Brazil Won’t Accept Separatism in Bolivia, Minister Warns

Celso Amorim, the Brazilian Foreign minister said that South America would never accept "separatism ...

US Firm Sells Amazon Trees by the Unit, But You Cannot Touch

RainforestForever.org, a U.S. based company, has launched a program, that according to the firm, ...