Law No. 14,286, of December 29, 2021 (“New Foreign Exchange Law”), will be in force as from December 30, 2022, one year after its official publication.

The New Foreign Exchange Law introduces rules that aim to minimize red-tape procedures and increase transparency within the Brazilian foreign exchange market, in addition to adjusting local corporate practices and operations to international market standards in order to establish an advantageous business environment and foster international investment in Brazil.

The new rule:

i. consolidates and repeals more than 40 rules that have provided for the foreign exchange market and foreign capital since 1920;

ii. aligns Brazilian legislation with operational requirements from global value chains, consequently stimulating international trade and investment flow in Brazil; and 

iii. adapts rules regarding the monitoring of international investments in Brazil and of Brazilian investments abroad, in proportion to business values and risks involved in the operations.

We addressed the main innovations brought by the New Foreign Exchange Law in Client Alert published on January 04, 2022. The regulation from the Central Bank of Brazil related to the New Foreign Exchange Law will be addressed in specific Client Alerts.

Our Banking and Finance team is available to assist our clients and provide any further clarifications that may be necessary.