On December 29, 2021, the President of the Republic, Jair Bolsonaro, sanctioned law 14.286 / 2021, known as “Marco Legal de Câmbio do Brasil”. This law was published in the Official Journal of the Union on 30 December 2021 and must enter into force within one year of its official publication.

The purpose of this new law is to modernize the legal provisions dealing with the foreign exchange market (dating back to 1935), as well as to create a more open environment for foreign investment in Brazil. However, many of the provisions of the new legal framework are still awaiting regulation by Banco Central and the National Monetary Council.

The new law increases the autonomy and freedom of Banco Central and the National Monetary Council regarding the regulation of the Brazilian currency market and paves the way for its greater efficiency and flexibility.

The changes brought about by the new law concern both natural and legal persons, whether they are Brazilian or foreign nationals.

Below is a summary of the main changes:

• Possibility, for foreign investors, to open a current account in Brazil in foreign currency;

• Possibility of trading in foreign currency between individuals, up to a maximum value of US $ 500.00, without the need for communication to any official body;

• Increase of situations in which payment in foreign currency will be allowed for activities carried out on the national territory, mainly in foreign trade operations;

• Ability to create, abroad, accounts in foreign currencies relating to the revenues of Brazilian exports of goods and services abroad, made by residents in Brazil;

• Possibility of private offsetting of credits or values ​​between residents and non-residents, in the cases provided for by the Central Bank regulation;

• Increase of the cash limit that each traveler can carry out or in from Brazil, from the current R$ 10 thousand to US$ 10 thousand (or the equivalent in another currency);

• Possibility of sending money abroad in the form of profits, dividends, interest, depreciation, royalties, scientific, administrative and similar assistance without the need for prior registration with Banco Central, subject to proof of payment of the income tax due;

• Possibility of carrying out activities related to the foreign exchange market by institutions other than banks or exchange houses, subject to the authorization of the National Monetary Council and Banco Central.

The complete and official text of the law can be found at this link: https://www.in.gov.br/en/web/dou/-/lei-n-14.286-de-29-de-dezembro-de- 2021-370918314

As specified above, the law has yet to be regulated and only needs to come into effect within one year.