Exchange Policy

Posted: 01/03/2022

Exchange Policy Time Frame

President Jair Bolsonaro sanctioned, without vetoes, the bill establishing the legal time frame for the new exchange policy, which represents a significant advance in the Brazilian exchange regulation system.

The new law, proposed by the government by suggestion of the Central Bank, will help to reduce market concentration, encouraging the participation of new entrants in a traditionally restricted sector of financial institutions.

Briefly, the new foreign exchange regulatory time frame policy will create business opportunities for more competitors and, consequently, will contribute to increase the competitiveness of the financial sector, making room for fintechs.

The Law No. 14,286, of December 29, 2021, is necessary, not only to reduce bureaucracy in the current legislation, but especially to bring a new regulatory exchange policy. It allows the entry of new technologies in this market, instituting clear rules for the opening, use and maintenance of the international account, both for residents and for non-residents; reiterates the competence of the Central Bank to regulate the possibility of individuals maintaining accounts in dollars in the country; authorizes the use of export money to grant loans; allows the remittance of profits, dividends, interest and royalties abroad, without the need for registration with the Central Bank, among other measures.

The new Law takes effect after 1 year of its publication and favors both financial institutions and fintechs and their respective customers, promoting the modernization and reduction of bureaucracy in exchange services.