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