Bill Paves the Way for Brazilian Bank Accounts in Dollars

Bill also authorizes fintechs to operate freely in the foreign exchange market

Fábio Pupo Danielle Brant
Brasília

The Jair Bolsonaro (PSL) government submitted to the House a proposal to reduce bureaucracy over foreign exchange operations. The bill paves the way for individuals to have dollar and other currency accounts, restricted to a few segments, such as tourism service providers.

According to the text, the Central Bank could gradually expand this authorization. A definitive release would require specific regulation. For specialists, account holders who send remittances to relatives abroad or receive money from them would be most interested.

Central Bank of Brazil building (Foto: Charles Sholl/Futura Press/Folhapress)

Another planned change, also subject to regulation, is to allow fintechs to act independently in the foreign exchange market. Today, they need to be associated with traditional financial institutions (such as banks and brokerages) to operate in this sector.

With the package, which would repeal over 100 laws, decrees, and other provisions created since 1920, a significant cut in foreign exchange costs is expected. Nevertheless, the BC did not provide an official estimate of how much the reduction would be.

Translated by Kiratiana Freelon

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