Brazil has been known for decades to have had strict foreign
exchange controls. The government, through the Central Bank of
Brazil, has maintained the exchange controls by restricting access
to the commercial exchange market to individuals and companies
engaged in international trade transactions, repatriation of
capital, remittances of dividends, profits, royalties and service
fees. Failure to comply with the exchange controls has, as a
general rule, precluded the Brazilian payer from making remittances
abroad in foreign currency.
On March 4 2005, the National Monetary Council (CMN) of the
Brazilian Central Bank issued resolutions 3265 and 3266 setting
forth important modifications to the Brazilian exchange market.
According to the president of the Central Bank, the changes will
turn the Brazilian exchange market into a more flexible one and,
consequently, make the Brazilian market more...