US Companies Shielded From Costly FX Fees Under New Brazil Rules

American multinational corporations and exporters operating in Brazil can now bypass mandatory, fee-heavy currency conversions by holding direct foreign currency accounts inside the country. For years, doing business in Latin America’s largest economy meant converting every incoming dollar into Brazilian reais, incurring heavy operational spreads and hedging costs.

Under new rules from the Banco Central do Brasil (the country's central bank), eligible international businesses can now directly hold, manage, and transfer US dollars without being forced to convert them. The regulatory shift, known as Resolution No. 575, officially went into effect on October 1, 2026. It expands access to foreign currency deposit accounts to legal entities that export goods, private-law companies with debt contracted abroad, and domestic companies with direct nonresident equity.

Eliminating the "Brazil Cost"

Historically, Brazil’s tight exchange controls—dating back to the 1950s—meant that keeping US dollars in a local bank was a privilege reserved only for embassies, insurance companies, and select tourism operators. For US corporations, this meant that revenues earned from Brazilian exports or capital injections had to be converted to reais and then back to dollars to pay global suppliers, losing a percentage to financial institutions on each leg.

The new framework aims to integrate Brazil further into the global financial system. By allowing eligible businesses to match foreign-currency receipts directly with foreign-currency liabilities, the central bank is effectively removing a significant layer of transactional friction. However, strict safeguards remain: physical cash withdrawals or deposits are banned, and companies must electronically demonstrate the origin of all funds to comply with anti-money laundering regulations.

Limits to the Liquidity Loophole

While the reform is a major step forward, it is not a blanket authorization for all corporate entities. The central bank clarified that importing services or goods, on its own, does not qualify a company to open a dollar account. To gain access, an importer must also fit into one of the authorized categories, such as being an exporter of physical goods or having direct foreign shareholders.

Furthermore, the rules do not allow companies to use foreign currency to settle domestic transactions within Brazilian territory. All domestic contracts and obligations must still be settled in Brazilian reais. Instead, the accounts are designed to act as a treasury tool to manage international trade, foreign credit lines, and direct investments.

In your brokerage app

For retail investors holding US-listed multinational companies with heavy exposure to Latin American trade, this regulatory relief helps protect corporate margins from volatile swings in the USD/BRL currency pair, which recently traded at 5.0371. Investors looking for broad exposure to the Brazilian corporate sector can monitor the iShares MSCI Brazil ETF, an exchange-traded fund listed in New York that tracks large and mid-sized Brazilian equities.