In May, the Brazilian government notified the IMF of its commitment, under the Bretton Woods Agreement of 1944, to lift exchange control regulations and to refrain from imposing restrictions on the flow of capital. The commitment is yet to be implemented, but certain previous procedures are already being simplified:
Foreign loans are no longer subject to prior authorization
Under Ruling 2770, August 30 2000, of the National Monetary Council, Brazilian residents operating in the private sector may receive international transfers resulting from foreign loans or the international issue of securities without the prior authorization of the central bank. Also, the relending of foreign funds in Brazil is no longer restricted to certain economic activities. Repayments in foreign currencies are still subject to registration of the international transaction with the central bank, but the registration procedure has been simplified.
Electronic registration of foreign investment
From September 4 2000, the registration of foreign investment with the central bank has been effected electronically.
Eliana Maria Filippozzi