It’s Easier to Be a Dollar in Brazil These Days

The unification of the free (commercial) and fluctuating (tourist) exchange rates went into effect, in Brazil, March 14, to the plaudits of the financial market.

The unification and export exchange regulations approved by the National Monetary Council (CMN) on March 4 simplify the legislation and facilitate the remittance of funds abroad.


The elimination of the difference between the commercial and tourist dollar, with their own specific laws, changes nothing with regard to the quotation of the American currency or the conversion of other foreign currencies.


On the other hand, the measure reduces the cost of currency exchange transactions, with a concomitant increase in the efficiency of the economy, affirmed the director of International Affairs of the Central Bank (BC), Alexandre Schwartsman.


All commercial, interbank, foreign investment, and loan transactions done on the free currency exchange were registered at the BC, while the fluctuating exchange charged prices higher than the daily quotation for international travel, services, Brazilian investments abroad, and remittances through the so-called CC-5 accounts (belonging to non-residents). These accounts, by the way, were abolished.


The US$ 5 million annual limit on Brazilians’ investments abroad was also eliminated, but the BC will continue to register all exchange operations involving more than US$ 3.6 thousand (10 thousand reus), as well as foreign capital inflows into the country.


The changes introduced by the CMN won the immediate sympathy of exporters, who now have up to 210 days after their merchandise is shipped to “discharge” the foreign currency on the domestic market.


They previously had only 50 days, regardless of whether or not they had received payment.


Translation: David Silberstein
Agência Brasil

Tags:

  • Show Comments (0)

Your email address will not be published.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

The Poor Plight Is the Wealthy Nations’ Responsibility, Says Brazil’s Lula

Brazilian President Luiz Inácio Lula da Silva reinforced his appeal to wealthy nations to ...

Minas, Brazil: Land of Martyrs and Churches

Tiradentes and Aleijadinho are two Brazilian heroes from the state of Minas Gerais. One ...

Brazil Waiting Another Central Bank’s Boost in Interest Rates

Latin American equities finished the day mixed, with Brazil and Argentina snapping back from ...

Brazil Making Up for Time Lost in Its Relation with Tunisia

Brazil and Tunisia are looking to expand the cooperation in the information technology area. ...

Brazil-Argentina Automotive Accord Opens Door to Mercosur Free Trade

Brazil’s Minister of Development, Industry, and Foreign Trade, Luiz Fernando Furlan, received a show ...

Brazil’s Civil War: 81 Killed, Hundreds of Hostages, Curfew Considered

Brazilian President Luiz Inácio Lula da Silva met this Monday, May 15, with the ...

Clio made by Renault in Brazil

Boom Times for French Carmaker Renault in Brazil: 61% Growth Anticipated

Renault Brazil, the Brazilian subsidiary of the French carmaker, increased its vehicle production in ...

It’s 2008. The US Has Dragged the World into a Depression.

Today, Brazil and most South American countries in general are disconnecting from the United ...

Brazil in the Opec, Just an Electoral Trick

Whoever imagines Brazilian President Lula following his own advice, in other words, waiting to ...

Victims of Kidney Trafficking Ring Acquitted in Brazil

Fifteen Pernambucans (born in the northeastern state of Pernambuco), each accused of selling one ...