It could be a game changer. Making payments in Brazil, particularly for foreigners without a local bank account, can be a challenge. For example, foreign funds sent to Brazil need to be registered with an exchange contract, and payment obligations must be in local currency. While change is coming, will it be enough?

Effective December 30, 2022, Brazil’s Novo Marco Cambial (Law 14.286/2021) will replace rules that have been around since 1933. So what’s new? Subject to approval by the Central Bank, banks will be allowed to open dollar accounts in Brazil and reais accounts in the US. And in some cases, you might even be able to pay your Brazilian obligations with foreign currency.

For those who like to travel with cash, the rule about how much money you can take with you is changing as well. Currently, you can enter and exit Brazil with BRL$10,000. When the new law becomes effective, that limit will increase to US$10,000. That’s an increase today of more than 400%.

Expect complications. There are always hiccups along the way. And despite the focus being on banking transactions involving residents, just the idea of loosening restrictions should give everyone reason to celebrate.

The next step in reform will hopefully focus on foreign investment. Allowing foreigners to easily open bank accounts or make payments would facilitate a desire by nonresidents to do business in Brazil.

We’re still months away from the changes, but stay tuned. This story is far from over.