Brazil’s Congress passes law authorizing dollar- and euro-denominated bank accounts in Brazil

RIO DE JANEIRO, BRAZIL – The Brazilian Senate approved on Wednesday a bill that authorizes any person to open foreign currency accounts in the country, including dollar and euro accounts. As the bill had already been approved by the Chamber of Deputies in 2020, it now only depends on the presidential sanction to become law.

The initiative was approved by a symbolic vote in the Upper House after the spokesmen of all parties in the Senate expressed their support for the reform of the foreign exchange market in Brazil.

Brazilian President Jair Bolsonaro is expected to sanction it in the next few days since the bill was sent to the legislature by the government itself after being proposed by the President of the Central Bank, Roberto Campos Neto.

The bill introduces several modifications to the exchange regulations in Brazil, summarizes and simplifies the more than 40 laws that regulate it, and adapts Brazil to the recommendations of the Organization for Cooperation and Development (OECD), which the country aspires to join.

One of the new legal provisions allows the Central Bank to create regulations for individuals and legal entities (companies) to open bank accounts in foreign currency in Brazil. This possibility is currently limited to companies that offer foreign exchange, international credit card operators, embassies, and consulates.

“Operations in the foreign exchange market may be carried out freely, without limitation of values, as long as the legislation, the guidelines of the National Monetary Council and the regulation to be edited by the Central Bank are complied with,” according to the new law.

The new legislation also establishes the rules for companies to open foreign currency accounts in Brazil and use them for payments abroad and international trade operations.

“The possibility for individuals and legal entities to have foreign currency accounts in Brazil brings the country closer to something common in developed economies, as well as in major emerging economies,” said the bill’s rapporteur in the Senate, Carlos Viana.

The senator added that the new legislation facilitates the operations of companies that carry out exports and imports and reduces the costs of commercial operations, benefiting the consumer.