In the foreign exchange market Brazil the authorized agents are the ones who are entitled to carry out foreign exchange transactions. This is established by the foreign exchange regulations of Brazil. The forms of transactions, which the regulations authorize, can be performed in their entirety by the commercial banks.
Other institutions can perform only specific foreign exchange transactions.
These organizations are the following:
Stock brokerage societies
Foreign exchange or securities societies
Securities and stock dealers societies
Tourism agencies (they can carry out business involving small amounts of foreign currency)
The foreign exchange transactions carried out in the Brazilian foreign exchange market must be registered under the Central Bank of Brazil. The form that needs to be filled up in this context is called the foreign exchange contract, which is recorded in Sisbacen system. The accounts that are denominated in the currency of Brazil are open for both the residents and non-residents of Brazil. However, the foreign currency denominated accounts are permitted only in specific cases.
In the recent past, the Brazil foreign exchange market has witnessed a lot of transformations in terms of deregulation and simplification. Before February 2005, only the transfers and transactions specified by the Brazilian Central Bank were allowed. The Central Bank used to analyze all the unmentioned transactions individually. All these changed after the introduction of the new and improved foreign exchange regulations policy of the country.
CMN Resolution 3265 reduces to a large extent the regulatory burden. The authorized agents and clients in the foreign exchange market Brazil can now negotiate freely. The authorizations of the Central Bank of Brazil are no longer required and this applies for all forms of foreign exchange transactions. Foreign exchange can now be sent and received without any hassles. The transactions can be performed through authorized banks directly. One only requires to be a legal resident of Brazil.
Law 11,371, introduced in November 2006 has further deregulated and simplified the procedures of import payments and export receipts. The exporters in Brazil can now maintain 30% of their revenues abroad. However, this law prohibits these export transaction proceeds to be used in granting inter-company loans.