Bolsonaro sanctions law establishing new exchange rate framework in Brazil

The text also provides for an increase in the limit of money that each passenger can take when leaving or arriving in Brazil. Instead of the current R $ 10,000, it will be $ 10,000 or the equivalent in another currency. Photo: Unsplash

President Jair Bolsonaro has sanctioned without veto the bill that establishes new rules for the Brazilian foreign exchange market and for the movement of foreign capital in the country. The sanction was published this Thursday (30) in the Official Journal. The text was approved by the Senate in early December. The new law allows Brazilian banks and financial institutions to invest funds raised in the country abroad, in addition to facilitating the use of Brazilian currency in international transactions. The text also provides for an increase in the limit of money that each passenger can take when leaving or arriving in Brazil. Instead of the current R $ 10,000, it will be US $ 10,000 or the equivalent in another currency, with no need to report these values.

Financial institutions authorized to operate by the Central Bank can use this money to allocate, invest, finance or lend on national or foreign territory. Negotiations of small amounts between individuals will also be released for an amount of US $ 500. The new rules extend the list of cases in which payment in foreign currency of obligations owed in the national territory will be authorized and will allow payments of commercial rental contracts (leasing) concluded between residents in Brazil if the funds are raised at the foreigner. The law also allows exporters to use resources held abroad and derived from exports for a loan or loan arrangement.

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