Brazil wants to allow people and businesses to open dollar accounts

In Brazil the opening of foreign currency accounts is only permitted for banks and foreign exchange and tourism agenciesand the dollar is not used as in Argentina for the transactions of goods, whether in real estate or in an account parallel to another in real.

The project is part of the new macroeconomic guidelines of the line of the Minister of Economy, Paulo Guedes, an ultra-liberal from the Chicago School of Economics who uses the so-called Chilean model as an example.

"Once authorized by Congress, this authorization to expand the range of foreign currency bank accounts will be carried out gradually and prudently, in accordance with the process of deepening the macroeconomic and financial fundamentals of the Brazilian economy"said the Central Bank.

The project amends a series of 1920 regulations on the use of the national currency even abroad to buy bonds in Brazil.

According to government authorities, transition to a non-dual system, but with permission to open accounts it can take two or three years.

Since the basic interest rate of the economy has fallen sharply since 2015 – last month, it reached 5.5% per annum – and with the coming to power of Bolsonaro and of its economic team, advertising on the funds has gained relevance in the media. investing with yields close to 12% per annum.

The dollar was R $ 3.88 when Bolsonaro took office on January 1 and Monday opened at 4.09.

The financial market bets on a dollar to four reais by the end of the year and to 3.95 by the end of 2020, according to the Central Bank's Focus newsletter released Monday.