BC Changes Rules for Foreign Transactions, Authorizes $10,000 in Deposits | Economy

BC will limit international transactions to up to $10,000
Reproduction: iG Minas Gerais

BC will limit international transactions to up to $10,000

The Central Bank (BC) and the National Monetary Council (CMN) updated the regulation of the exchange market and are going to allow international transfers of up to US$ 10 thousand. The measure takes effect on October 1st.

Transfers can be made between accounts of the same customer in Brazil and abroad and to third parties. For the latter, the rule is that the resources are destined to “current expenses”, such as with the maintenance of a person abroad, pensions, pensions and donations.

Currently, those who usually do the eFX service, as called by BC, are companies that facilitate international payments and cards, for example. The institution’s expectation is that there will be an increase in the means that allow these transfers of up to US$ 10,000.

Another change makes it easier to send and receive international funds via credit card. The objective is to facilitate the international sending of small amounts, called personal transfers.

It is usually Brazilians abroad who send money to their families in Brazil or parents who are in Brazil sending funds to children who study abroad.

As the report showed, remittances from Brazilians abroad hit a record in the first half of this year due to the crisis and the devalued real.

According to the head of the sub-unit of the Central Bank’s Prudential and Exchange Regulation Department, Lucio Holanda Oliveira, it will be a faster, cheaper and simpler system.

“A person who has an international credit card will be able to make the remittance and, for example, the person in Brazil will have the account credited. We understand it as a good alternative for these transfers of small amounts,” he said.

In the same regulation, BC and CMN also allowed payment institutions to request authorization to operate in the foreign exchange market as of September 2022. The operation will only be by electronic means, that is, without exchanging physical currency.

Many of the fintechs that offer digital accounts are payment institutions and the idea is to expand competition in the market, according to Ferreira.

“We have an expectation that these measures really bring more competitiveness to the market. We will have new participants, new possibilities for carrying out operations, it is something that we see as very positive,” he said.

Foreigners in Brazil

Foreigners in Brazil will also receive permission to open a prepaid account in the country. Before, it was only allowed to open a deposit account. According to Ferreira, this will bring more flexibility to those who need to receive funds in the country.

“From now on, someone who is a non-resident who has an economic interest in the country, has to pay obligations or receive some value, will be able to open these prepaid payment accounts, just as Brazilians who will live abroad will have the facility of having accounts prepaid payment,” said the head of the subunit.

In addition to people’s daily lives, the BC also relaxed exchange rules for exporters. As of October, they will be able to receive the revenue from their sales in an account abroad, whether from a foreign institution or from a Brazilian institution that has an account abroad.