Brazil: new exchange law paves the way for international Pix

Since December 31, 2022, a law has been in force that paves the way for the “international Pix”.

The Central Bank of Brazil (BC) is studying ways to develop a tool capable of making the service viable. The BC is also working on a functionality for the creation of the “digital real”, which should be available within three years.

The new law that came into effect is based on the free movement of capital and on carrying out exchange operations with less bureaucracy, facilitating international transactions.

The new rules should reduce the costs of buying and selling dollars, providing more legal certainty and increasing the conversion of the real.

Now, there can be purchase and sale of foreign currency between individuals, which was previously prohibited. Previously, if travelers entered or left Brazil with more than R$10,000  (US$1,910) in cash, they had to present a declaration.

After the law, the value increased to US$ 10,000. Transfers outside the country can be made in reais through accounts abroad.

The previous legislation began to be structured in 1920, in a context of foreign currency shortages, no longer consistent with today’s globalized economy.

Therefore, the market welcomes the important changes in the law, which impact financial agents, importers, exporters and all individuals and legal entities that wish to operate in foreign currency.

With information from Revista Oeste