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3. The Central Bank of Brazil (BCB), through Resolution n. 16/2020, updated the foreign exchange transaction regulation in order to promote competitiveness to the international payments market. The update covers the digital signature on foreign exchange contracts and the use of prepaid international payment facilitation accounts.

The Central Bank of Brazil (BCB), through Resolution n. 16/2020, updated the foreign exchange transaction regulation in order to promote competitiveness to the international payments market. The update covers the digital signature on foreign exchange contracts and the use of prepaid international payment facilitation accounts.

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BCB Resolution n. 16/2020 updated BCB Circular n. 3.691/2013, which regulates foreign exchange transactions. The resolution covers two main topics:

First, the resolution incorporated provisions (articles 41-43) that allow digital signature for foreign exchange contracts established between authorized financial institutions and its clients.

Second, it allowed the use of prepaid payment accounts, provided by authorized financial institutions to its clients, for international transactions in Brazilian Real (articles 130 and 132).

The update aims at corresponding to modernization needs in the face of increasingly digital financial solutions.