CURRENCY EXCHANGE INFORMAL MARKET IN BRAZIL

Us ing Ce ntral Bank
Obtains Import License using Pro-f orma inv oice
Importer has 180 day s to reciev e goods
Legal
f unds transf erred to exporter
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Importer
exchange Euro/Dollar f or Real/Peso
Currency Exchanged using Parallel Market Rate South American Cambio/ Trav el Agent
Large Cambio
U.S. Money Serv ice Business
U.S. Bank
LEGAL IMPORTATION PROCEDURE IN BRAZIL
Le gal M e thod of Im porting goods to Brazil
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Brazilian Importer
Le gal Trade in Brazil
Central Bank of Brazil Goods reciev ed by Importer
purchases a wire transf er f rom local bank in Brazil @ of f icial rate
goods shipped to importer
Illegal
Pay Duties 10%-100%
Finished MSB/Own acct. gets wire f rom Importer Importer reciev es goods MSB has a U.S. bank account in U.S. Dollar Adds more f unds v ia parallel
Obtains Import License using Pro-f orma Inv oice
Importer wire transf ers pay ment to exporter using of f icial channels
Importer pay s duties on goods to Brazilian Customs
Exporter ships goods to Importer
PARALLEL MARKET METHOD OF IMPORTATION IN BRAZIL
Typical Paralle l M ark e t M e thod of Im porting goods to Brazil
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Central Bank of Brazil
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CURRENCY EXCHANGE INFORMAL MARKET IN BRAZIL
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Curre ncy Exchange in the Paralle l M ark e t
Cash, Traveler's Checks, and Bank Checks
European/ US Tourists
TYPES OF ASSETS EXCHANGED BY BRAZILIAN DOLEIROS.
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•1Leabharlann CASHMost strong currencies are exchanged in Brazil. The US Dollar is the # 1 sought after but European Euros are becoming a close 2nd. Japanese Yen, Swiss Francs and any other “Well Known” currency is exchangeable. On the bordering cities, the bordering countries currencies are also readily converted into any other.
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TRAVELLERS’CHECKS
Don’t leave home without them. They are also widely accepted and exchanged all over the country.
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PERSONAL & CORPORATE CHECKS (INCLUDING PENSION CHECKS |US & Foreign| - SOCIAL SECURITY/IRS, ETC) Usually exchanged by expatriates, retirees and foreign workers, corporations, Brazilians with foreign accounts, consulates and embassies (Including the US). These drafts are only exchanged after the Doleiro knows his customer or if it bears another Doleiro guarantee (usually a stamp on the back of the document). Remember the 70’s smurfs? 4 WIRE TRANSFERS Bought and sold by Doleiros and their clients. The actual strong currency never gets to Brazil. It stays within the banking system abroad. Sources for wire transactions are the checks and tc’s acquired abroad, local msb’s remittances to Brazil and foreign commercial and parked worldwide funds by persons and corporations that do business or live in Brazil.