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:

You May Also Like

Porto Ferreira Sells Brazilian Tiles to 115 Countries

Brazilian company Porto Ferreira, a maker of floor tiles, ceramics and facing, which is ...

Brazil’s Textile Industry Urges Prompt Sanctions Against China

Management and employees of the São Paulo textile industry, which represents 40% of domestic ...

Brazilians Go to the Streets to Shout Against Corrupts: “No, You Can’t”

In Brazil, Independence Day commemorations this September 7, in Brazilian capital Brasília with the ...

Brazilian Congress Calls for Defense Minister’s Head Following Airports’ Chaos

Brazilians senators have transformed the Senate floor, this Wednesday, December 6, in a stage ...

The Real Lesson of Brazil’s Cicarelli Hot Video and YouTube Ban

Usually I write about political stuff. Or serious things. But stay with me. This ...

Some Lessons from Brazil to Fight World Poverty

Brazilian President Luiz Inácio Lula da Silva announced that, during his visit to New ...

Brazilian Indians Will Keep Land of the Fox and Mountain of the Sun

Eight of the eleven Supreme Court judges in Brazil voted in favor of the ...

China Strength Moves Brazilian Stocks Up

Latin American equities rallied, alongside gains on Wall Street and a decline in crude ...

Killers of Landless Leaders in Brazil Still at Large

On August 20, two leaders of the Landless Movement (MST) were assassinated (shot in ...

Cargo and Foreign Routes Bring Brazil’s TAM 10% Boost in Revenues

Brazil's flagship airline TAM ended last year with a 10% increase in gross revenues, ...