On June 18, 2026, the Central Bank of Brazil (“BCB”) enacted Resolution No. 575 (“BCB Resolution 575”), which amends BCB Resolution No. 277, dated December 31, 2022 (“BCB Resolution 277”), which regulates the Brazilian foreign exchange market, and BCB Resolution No. 278, dated December 31, 2022 (“BCB Resolution 278”), which provides for foreign capital in Brazil and Brazilian capital abroad, in order to allow new categories of legal entities to hold foreign currency deposit accounts in Brazil.
The regulation will take effect on October 1, 2026.
Set out below are the key changes introduced by BCB Resolution 575:
List of Foreign Currency Account Holders
BCB Resolution 575 expands the list of entities set forth in BCB Resolution 277 that may maintain foreign currency deposit accounts in Brazil to include new categories of legal entities eligible to hold such accounts, including:
- legal entities exporters of goods;
- private-law resident legal entities that are debtors of external credit;
- companies headquartered in Brazil, with legal personality, that have direct non-resident ownership in their capital stock;
- non-resident legal entities that are creditors of external credit to residents; and
- non-resident legal entities with direct ownership in the capital stock of a company headquartered in Brazil.
Exemption from FX for Transfers Between Foreign Currency Accounts
The new regulation also provides for an exemption from the requirement to conduct foreign exchange transactions for the transfer of funds in foreign currency to and from foreign currency deposit accounts in Brazil, including in cases involving conversion between foreign currencies, which tends to simplify cash flows and reduce operating costs.
Rules for managing Foreign Currency Accounts
In addition, BCB Resolution 575 introduces specific conditions for the use and operation of such accounts, as follows:
- For legal entities exporters of goods, a structured regime is established to allow them to retain foreign currency revenues in the country, while ensuring that such funds are linked to export activities, by stipulating that: (i) the funds must originate exclusively from export revenues and other income from abroad; (ii) the exchange of amounts held in the account into Brazilian reais is subject to a foreign exchange transaction; and (iii) cash withdrawals and deposits, as well as transactions via checks, are prohibited.
- For the other categories (external credit debtors, companies with direct non-resident ownership, and non-resident legal entities that are creditors or hold equity interests in a company headquartered in Brazil), transactions are additionally subject to regulations governing foreign capital in the country, and it should be noted that: (i) credits and debits must originate exclusively from external credit transactions or foreign direct investment; and (ii) the requirement to enter into a foreign exchange contract for currency exchange into Brazilian reais, as well as the prohibition on cash withdrawals and deposits and the use of checks, also applies.
Reporting Requirements to the BCB
Furthermore, it is established that institutions authorized to operate in the foreign exchange market that maintain foreign currency deposit accounts must submit information on each account to the BCB on a monthly basis through the Foreign Exchange System, no later than the 5th business day of the month following the reference month, including: (i) customer identification and account holder classification; (ii) the account identifier in the International Bank Account Number (IBAN) format and the currency of denomination; and (iii) the balance on the first and last day of the month, as well as the total credits and debits for the period.
External Credit and Foreign Investment
BCB Resolution 575 also introduces amendments to BCB Resolution 278, notably:
- The opening and maintenance of foreign currency deposit accounts by the new categories of account holders are subject to proof of existing external credit transactions or foreign direct investment, with the obligation to certify to the banking institution that such transactions are reported and up-to-date in the Foreign Capital and External Credit Information Reporting System (SCE-Crédito) or the Foreign Direct Investment Information Reporting System (SCE-IED).
- Limitation of payments arising from external credit transactions to the amount necessary to settle the principal, interest, and charges.
- Adjustments to reporting obligations and deadlines, including a deadline of up to 30 days after disbursement, delivery of goods, or provision of services for reporting the payment schedule.
- Expansion of the situations subject to reporting requirements, including the assignment of credit and payments and receipts settled using virtual assets or through debits and credits to foreign currency deposit accounts within the country.
Our firm has a dedicated team focused on Banking and Finance matters. Should you have any questions regarding this topic or any other matters of interest, please do not hesitate to contact our professionals.
