On July 19, Brazil’s Central Bank (Banco Central do Brasil/Bacen) released a public consultation about certain aspects of the country’s new foreign exchange regulatory framework (Novo Marco Regulatório de Câmbio), which will enter into force on December 31, 2022.
On July 19, Brazil’s Central Bank (Banco Central do Brasil/Bacen) released a public consultation about certain aspects of the country’s new foreign exchange regulatory framework (Novo Marco Regulatório de Câmbio), which will enter into force on December 31, 2022.
The end of restrictions meets market expectations, since it is now possible to carry out and settle loans abroad without any funds having to enter the country.
The main advantages that come from this proposal are (i) the reduced operating costs in loan operations abroad; (ii) favored cash flow management; and (iii) the possibility of using natural hedge, which works as an indirect protection for companies that carry out exports.
