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Brazil's FX market: who can trade, how the rate is set, PTAX and the rules every FX contract follows

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Last verified: 2026-10-27 · Status: Stable

Every purchase or sale of foreign currency in Brazil goes through a bank or other institution authorized by the Central Bank, at a rate freely agreed with no amount limit. The client, not the bank, is responsible for classifying the purpose of each FX contract, and the bank decides which documents to ask for. The Central Bank's PTAX is a reference rate, not a mandatory one, and non residents can hold accounts in reais in Brazil on the same terms as residents, with some limits.

USD figures use the Banco Central do Brasil PTAX selling rate of R$5.5007 per US dollar for 26 October 2026, the last rate published before verification. Conversions are for orientation only; the rate on the day of each FX contract will differ.

Key facts

Amount limits on FX transactions	None Lei nº 14.286 art. 2, as of 2026-10-27 · in force
Exchange rate determination	Freely agreed between the authorized institution and the client Lei nº 14.286 art. 2 sole paragraph, as of 2026-10-27 · in force
Maximum spot settlement period	2 business daysResolução BCB nº 277 art. 38 I, as of 2026-10-27 · in force
Maximum term for future FX settlement	1500 daysResolução BCB nº 277 art. 38 II, as of 2026-10-27 · in force
Reais side of an FX contract that may be settled in cash	10000 BRLResolução BCB nº 277 art. 19 § 3, as of 2026-10-27 · in force
Spot client operations requiring prior VET disclosure, up to	100000 USDResolução BCB nº 277 art. 18, as of 2026-10-27 · in force
Records kept by FX institutions	10 yearsResolução BCB nº 277 art. 8, as of 2026-10-27 · in force
Banco Central do Brasil PTAX selling rate, reais per US dollar	5.5007 BRLBanco Central do Brasil PTAX, as of 2026-10-26 · in force

The rule

1. FX transactions are free with no limit on amount, and the exchange rate is freely agreed between the authorized institution and its client. Only institutions authorized by the Central Bank may operate in the FX market.
Cost to do it: No government fee for an FX contract; the cost is the bank's spread, any bank fee and IOF tax on the transaction.Lei nº 14.286, Art. 2 and sole paragraph; art. 3, 2021-12-29 official text · verified 2026-10-27

2. The client is responsible for classifying the purpose of each FX transaction, and the institution must give guidance and technical support, including online, to clients who need help. The institution must identify and qualify its clients and ensure the lawful processing of the transaction.Lei nº 14.286, Art. 4, items I and II, §§ 2 and 3, 2021-12-29 official text · verified 2026-10-27

3. The institution may request or waive supporting information and documents according to its own assessment of the client and of the transaction, and must keep records for at least ten years from the end of the year of contracting or settlement.
Cost to do it: No fee set; documentation burden varies by bank.Resolução BCB nº 277, Arts. 7 and 8, 2022-12-31 official text · verified 2026-10-27

4. A resident is a company domiciled or headquartered in Brazil; a non resident is one domiciled or headquartered abroad. An individual on a temporary visa becomes resident from arrival if employed or carrying on an economic activity in Brazil, or after more than 12 consecutive months in Brazil; a resident who leaves temporarily becomes non resident from the day after completing 12 consecutive months abroad.Resolução BCB nº 280, Arts. 2, 3 and 4, 2022-12-31 official text · verified 2026-10-27

5. Spot FX settles within two business days of contracting; future settlement may run up to 1,500 days. The rate on spot and future contracts must reflect only the price of the currency on the contracting date. Buying or selling at rates out of line with the market, or that may amount to FX evasion or price manipulation, is subject to penalties.Resolução BCB nº 277, Art. 15, art. 16 and art. 38, items I and II, 2022-12-31 official text · verified 2026-10-27

6. For client FX operations for spot settlement of up to US$100,000, the institution must tell the client the Total Effective Value (VET) before the operation, in reais per unit of foreign currency, including the rate, taxes and any fees.
Example: On a US$20,000 purchase the bank must show the all in cost per dollar, so a quote of R$5.5007 plus spread, fee and IOF can be compared across banks. / Applies to any spot operation up to US$100,000.Resolução BCB nº 277, Art. 18 and sole paragraph, 2022-12-31 official text · verified 2026-10-27

7. The reais side of an FX contract must be paid or received through a deposit or payment account in Brazil (or by cheque). Up to R$10,000 it may be settled by any payment means, including cash. Splitting an operation to use any threshold is prohibited.
Example: R$10,000 in cash is the most that can settle the reais side of an FX contract. / About US$1,818.Resolução BCB nº 277, Art. 19 §§ 1 and 3; art. 22, 2022-12-31 official text · verified 2026-10-27

8. For dollar equivalence of FX contracts in other currencies, the most recent exchange rate published by the Central Bank for the date of the event is used.Resolução BCB nº 277, Art. 17, 2022-12-31 official text · verified 2026-10-27

9. Authorized institutions may open, keep and close deposit and payment accounts in reais for non residents on the same conditions as for residents. Each movement in a prepaid payment account in reais of a non resident is capped at R$100,000, except against an FX purchase or sale. Movements of third party funds are allowed only in accounts of regulated foreign institutions kept at banks authorized for FX.
Example: A foreign parent can hold reais at a Brazilian bank and pay local suppliers from it; a prepaid payment account in its name may move at most R$100,000 per transaction. / R$100,000 is about US$18,180.Lei nº 14.286 art. 5 § 4; Resolução BCB nº 277, Res. 277 arts. 67, 68 and 68-A, 2022-12-31 official text · verified 2026-10-27

10. Occasional, non professional purchases and sales of cash foreign currency between individuals in Brazil of up to US$500 are outside the FX law.
Example: About R$2,750. / US$500 limitLei nº 14.286, Art. 19, 2021-12-29 official text · verified 2026-10-27

Person	Resident when	Rule
Company	Domiciled or headquartered in Brazil	Art. 4 I
Individual on temporary visa, employed or economically active	From the date of entry	Art. 2 IV a
Individual on temporary visa, other	After more than 12 consecutive months in Brazil	Art. 2 IV b
Individual with indefinite residence permit	From the date of entry	Art. 2 III
Resident leaving temporarily	Stays resident for the first 12 consecutive months abroad	Arts. 2 VI and 3 IV

Who is resident for FX purposes (Resolução BCB nº 280).

Worked example

Converting a capital injection. A foreign parent sends US$1,000,000. At the PTAX of R$5.5007 that is R$5,500,700, but the bank's rate is negotiated, and the VET rule does not apply above US$100,000, so ask for the rate, spread and fees in writing (Lei nº 14.286 art. 2; Resolução BCB nº 277 art. 18). The FX contract is classified as foreign direct investment by the client, and the inflow bears IOF of 0.38 percent, about R$20,903 (Decreto nº 6.306 art. 15-B XXV).

Step by step

1. Open a deposit account in reais with a bank authorized for FX; non residents may open one too (Resolução BCB nº 277 art. 67).
2. Ask two or three authorized banks for quotes; the rate is free and PTAX is only a reference (Lei nº 14.286 art. 2).
3. Classify the purpose code of the FX contract correctly, using the bank's support if needed; the classification is your responsibility (Lei nº 14.286 art. 4 § 2).
4. Provide the documents the bank asks for and keep your own set; the bank keeps records for ten years (Resolução BCB nº 277 arts. 7 and 8).
5. Settle the reais side through an account, not cash, above R$10,000 (Resolução BCB nº 277 art. 19).

Common traps

Treating PTAX as the price you will get. PTAX is the Central Bank's reference average; your bank's rate is negotiated and includes a spread (Lei nº 14.286 art. 2).
Leaving classification to the bank. The client is legally responsible for the purpose code, and a wrong code can mean the wrong IOF rate and wrong Central Bank reporting (Lei nº 14.286 art. 4 § 2).
Splitting transactions to stay under a threshold such as R$10,000 cash or US$100,000. Splitting is expressly prohibited (Resolução BCB nº 277 art. 22).
Assuming an expatriate is non resident. A foreign manager employed in Brazil on a temporary visa is resident for FX purposes from arrival (Resolução BCB nº 280 art. 2 IV a).

Sources

Related: Brazil country profile · live dashboard · central bank and release calendar · our posts on X · where Argentina is involved, see The Argentine Thread guide

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