The Central Bank of Brazil (BCB) submitted two draft resolutions to public consultation, regarding the improvement of foreign exchange market regulation, by incorporating innovations and new foreign transactions business models. They seek to improve market efficiency and competitiveness.
Public Consultation n. 79/2020 from the Central Bank of Brazil (BCB) seeks to survey the public opinion on two draft resolutions on the incorporation of innovations and foreign transactions business models to the foreign exchange market regulation.
The two drafts – a CMN resolution proposal altering Resolution n. 3.568/2008 and BCB resolution proposal modifying BCB Circulars n. 3.689/2013, 3.690/2013 and 3.691/2013 – present the following updates, among other amendments:
- Regulating remittances (personal transfers) through pre-paid payment accounts from financial institutions authorized by BCB. It also allowed that the payment of imported goods and services, of a commercial invoice, be realized through credit in payment accounts from non-residents, under specific conditions;
- Allowing authorized Payment Institutions (IPs, in the Portuguese acronym) to operate in the foreign exchange market under specific limitations. It covers client and interbank operations, and is not applicable to physical currency;
- Enforcing the role of international payment facilitation services, namely “eFX”, provided by IPs, other financial institutions or individuals authorized by BCB.
Altogether, the amending proposals seek to improve efficiency and competitiveness by updating the foreign exchange market regulation with innovations and new business models made available in the last years.
The public consultation’s public notice, containing the two draft resolutions, is available here (in Portuguese). Contributions can be submitted, through a post in the consultation’s website, until January 29, 2021.
