Bolsonaro sanctions project that opens the way for individual dollar accounts in Brazil

President Jair Bolsonaro (PL) sanctioned a bill that promotes a series of changes in the Brazilian foreign exchange market.

The text published in the Official Gazette of the Union this Thursday (30) opens the way for individuals to have bank accounts in foreign currencies, such as the dollar or the euro.

The new rule also allows Brazilians to leave or enter the country with up to US$ 10 thousand without having to declare them to the Federal Revenue. The limit was R$ 10 thousand.

“The proposal makes it possible for Brazilian banks and financial institutions to invest abroad resources raised in the country or abroad, in addition to facilitating the use of Brazilian currency in international transactions”, says a note from the General Secretariat of the Presidency.

The proposal was sent to Congress in 2019 by the federal government, being an initiative of the Central Bank and the institution’s president, Roberto Campos Neto. The objective would be to modernize the foreign exchange market, but the authorities said that this permission for accounts in foreign currencies would take place gradually, concurrently with other reforms and macroeconomic adjustments.

The initiative increases the Central Bank’s autonomy to regulate the exchange market.

Foreign exchange legislation was dispersed in more than 40 laws and other provisions and also seeks to adapt Brazil to the recommendations of the OECD (Organization for Economic Cooperation and Development).

Under the new law, the Central Bank can edit regulations so that individuals can open and maintain accounts in foreign currency in Brazil. This practice was only possible in some specific situations, such as embassies, consulates and exchange brokers.

The text also removes the ban on foreign banks that have real accounts in the country to make payments abroad. Currently, the institution can only use the account to make payments in Brazil.

It also makes it easier for international institutions — such as foreign central banks and institutions domiciled abroad — to have deposit and custody accounts in reais. It also expands the legal provisions so that the real can be used in business abroad.