Financial Education

Do you have any questions about currency exchange? Click on the sections below to find out more:

What does a foreign exchange broker do?

Foreign exchange brokers operate exclusively in the foreign exchange market, intermediating transactions between clients and banks or buying and selling foreign currency to/from their clients, directly or through foreign exchange correspondents.

What does a foreign exchange correspondent do?

A foreign exchange correspondent is one who carries out transactions on behalf of and under the guidelines of the contracting institution, which is an institution authorized by the Central Bank of Brazil to operate in the foreign exchange market, such as a Foreign Exchange Broker. Be aware that the foreign exchange correspondent must disclose to the public its status as a service provider to the Foreign Exchange Broker, identified by the name by which it is known in the market, with a description of the products and services offered and the Foreign Exchange Broker’s contact channels. If this information is not available, it is possible that the institution is illegal.

How can I check if an institution can carry out foreign exchange transactions?

The Central Bank of Brazil provides a list of institutions authorized to operate in the foreign exchange market. https://www.bcb.gov.br/estabilidadefinanceira/instituicoesoperacambio

What is a foreign exchange transaction?

This involves exchanging one country’s currency for another. In this foreign exchange market, individuals and legal entities can buy and sell foreign currency through an authorized institution.

What are all the fees applied to the exchange transaction?

To determine the Total Effective Value (VET), one must consider the exchange rate (price of the foreign currency), the Financial Transactions Tax (IOF), and any fees charged for the service. These three factors allow the customer to compare available market prices for buying and selling foreign currency.

What is the maximum amount of cash I can take on a trip abroad?

The maximum amount allowed for international travel without the requirement to declare is US$10,000 (ten thousand dollars). When exceeding the limit established by the new foreign exchange law, cash must be declared entirely online through the Federal Revenue Service website using the Electronic Declaration of Traveler’s Assets (e-DBV).

Commercial Dollar

The commercial dollar value is used to set market rates. The currency is used to pay for or receive funds from Brazil’s imports and exports of goods and services to the rest of the world.