I. Local currency



Brazil's currency is the Real, also known as the black.



Brazil imposes stricter controls on foreign exchange. Foreign enterprises or individuals (except those with diplomatic privileges, individuals or approved enterprises) cannot open foreign exchange accounts in Brazilian Banks. Foreign exchange must be converted into local currency before it can be withdrawn. The real is the only common currency in the market. However, foreign exchange trading is relatively free. At present, Brazil has two legal foreign exchange markets: the trade foreign exchange market and the tourism foreign exchange market. They are regulated by the central bank and have floating exchange rates.



"Trade exchange rate", also known as "financial exchange rate", is free floating. The exchange rate is mainly used for:



(1) For foreign exchange in import and export trade, foreign exchange may be purchased by virtue of import license or valid foreign trade contract;



(2) the exchange of foreign currencies for investment into Brazil;



(3) foreign currency loans of Brazilian natural or legal persons;



(4) other foreign exchange transfers approved by the Brazilian foreign exchange administration. The "tourism exchange rate", which is also freely floating, is mainly used for foreign exchange in the tourism industry.



Access to Brazil's "exchange rate for trade" requires prior approval from the central bank, while the use of Brazil's "exchange rate for tourism" does not require such approval.



Exchange operations are carried out through foreign exchange contracts. In addition, Brazil has a "parallel market" in foreign exchange, a black market in which newspapers publish daily prices. At present, the exchange rate is close to the official foreign exchange market price.





Change in exchange rate of the Baht against the US dollar since 2006 in real/US dollar



In 2008, before the outbreak of the international financial crisis, the BAHT showed a trend of appreciation and reached its highest level on August 1, 2008, with the buying price of the trade exchange rate reaching 1.52 reais per US dollar. After that, the BAHT began to depreciate rapidly, and the buying price reached 2.34 reais per US dollar on December 8, 2008. The Pakistani currency has recovered somewhat since 2009.



The renminbi cannot be settled directly with the Brazilian real.







Ii. Foreign exchange management



Brazil has strict foreign exchange controls and all legal persons and individuals are not allowed to open foreign exchange accounts in the country without approval. Foreign exchange must go in and out through the Brazilian Central Bank. The repatriation of profits of foreign-funded enterprises is subject to capital gains tax at the rate of 15%. There is no limit on the amount of foreign currency cash that passengers can bring into China, but the amount of foreign currency cash in excess of 10,000 reais must be declared.