Central Bank May Allow Dollar Accounts in Brazilian Banks
By Richard Mann, Contributing Reporter
RIO DE JANEIRO, BRAZIL – The chairman of the Brazilian Central Bank, Roberto Campos Neto, announced on Wednesday May 29th a series of actions that the bank should take to improve the business environment in the country, reduce bureaucracy and stimulate productivity.
The measures are part of the so-called BC# agenda.
Among them is a draft bill that would be sent to Congress to simplify foreign exchange legislation. One of the points in the project would allow dollar-denominated bank accounts in Brazil and also facilitate banks in other countries holding accounts in Brazilian Reais.
However, Campos Neto stated that simplifying the the foreign exchange regulations is only a goal, and that the country is still far from the prospect of having accounts in dollars. “It’s a long process,” he said.
According to the Central Bank’s regulatory director, Otávio Ribeiro Damaso, the process should be conducted with caution.
According to Damaso, a few sectors of the economy may already have foreign currency accounts in Brazil, such as the oil industry and embassies.
“If it is allowed for other sectors, it must be done with caution,” he said.
The agenda also includes measures to encourage microcredit, financial education, to expand real estate credit and improve financial market transparency.
According to Campos Neto, the details of the initiatives will be presented over time.
During a press conference, Campos Neto emphasized the significance of financial education.
“Part of the issue we face is poor financial education,” he said. He pointed out the need for support to over-indebted individuals and recalled that bank overdrafts penalize more those who earn less.
“These efforts, together with the structural reforms promoted by the government, are crucial for the revival of economic activity and the development of Brazilian economy,” he said.
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