Brazilan Monetary Council simplifies payments in local currency with Argentina, Paraguay, and Uruguay

The Brazilian Central Bank (BC) informed on Thursday (20) that the CMN (National Monetary Council) approved a resolution that simplifies and standardizes procedures of the SML (System of Payments in Local Currency), which brings together Brazil, Argentina, Paraguay, and Uruguay.

According to the Central Bank, this system allows transactions between companies and individuals from these countries to occur in their local currencies.

Among the main changes are:

• the simplification of the SML operational procedures carried out by authorized financial institutions,
• and standardizing procedures to control exchange operations and transactions in the SML.

In addition, the CMN decided to expand the list of institutions that can operate on the SML, becoming a product to be offered to clients of institutions authorized to operate the foreign exchange in Brazil.

“The updates have the potential to promote competition, reduce the cost to the end user, improve security, reduce the time of payments, integrate the SML with innovations in the financial system, and contribute to the BC’s supervisory efficiency,” the BC said in a press release.

Since 2008, the SMLs in which the BC participates have already moved about R$50 billion (US$1 billion).

With information from Forbes