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Brazil commits to lifting exchange controls

In a letter from the Minister of the Economy to the IMF sent on May 31 2000, the Brazilian government has confirmed that it intends to move from the scope of Clause 14 of the Bretton Woods Agreement - a transitory clause which allows developing countries to impose certain monetary and exchange restrictions - to Clause 8 of the agreement. Clause 8 is a standard clause that forbids any kind of restrictions related to capital flows between Brazil and foreign countries.

Brazil adheres to the Bretton Woods Agreement which, among other resolutions, created the IMF on January 14 1946, and has followed the Agreement's provisions since the promulgation of Decree No 8.479 on December 21 1945, which incorporated the Bretton Woods Agreement into the Brazilian legal system.

Under the Bretton Woods Agreement all existing restrictions, barriers and taxes provided by Brazilian legislation towards international financial operations - such as taxes on capital remittances to and from Brazil - as well as the requirement for the registration of such operations, are no longer applicable. The modification of Brazil's position under the Bretton Woods Agreement automatically revokes any provision to the contrary.

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