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Print articleCentral Bank Determined to Make Foreign Investment Simpler
March, 2014 - VistaBrazil - February 2014
The Central Bank of Brazil initiated a public hearing on 6 February to facilitate foreign investment. The Internet-delivered hearing will end on 7 April. The idea is to include under a single normative act the scattered provisions relating to fixed and variable income investment, as well as to portfolio investment.
The measure is one of initiatives taken by the Central Bank within its Otimiza-BC program of cost reduction. Among the principal changes proposed is the possibility for non-residents to invest in shares or other papers with resources denominated in reais that they already own in the country.
At present, non-residents willing to invest in reais must follow a cicuitous route by exporting their reais, converting them into dollars, and then re-importing the money for the specific purpose. If the measure is approved, foreign portfolio investment will receive the same treatment as foreign direct investment (FDI) and external loans.
