The Central Bank proposed this past Monday (October 7, 2019) a bill that aims to modernize the rules that currently govern the foreign exchange market in the country, which, according to technicians from the monetary authority, will give exporters more freedom in the use of their own resources abroad.

This refers to "exchange rate liberalization," which implies that bank accounts, salaries, and prices can be dollarized, aiming to end the restrictions currently imposed on companies regarding the use of their export revenues in the country.

Currently, Brazilian law dictates that funds belonging to an exporting company based in Brazil must enter the country through a foreign exchange transaction before being remitted abroad. However, according to the proposed law, it may be possible to obtain the loan directly.

According to the Central Bank's director of regulation, Otavio Damaso: "With this bill, we will be able to simplify and reduce the bureaucracy of exchange rate regulations, which are currently extremely complex in some cases and require significant ongoing expenses from companies."“

The bill has been sent to Congress and will go through all the standard legislative procedures so that, only after the necessary approvals, it can be sent to the President of the Republic, who can then approve or veto it.

Source: EXAM