Brazil aims to make its currency, the real, fully convertible within two to three years, central bank President Roberto Campos Neto said on Wednesday, in an effort to lower the cost of cross-border trade and investment.
Speaking to reporters as he unveiled a range of proposals to simplify regulations and make financial markets more flexible and accessible, Campos Neto said the monetary authority will propose changes to exchange rate legislation in the near future.
The reform agenda presented by Campos Neto promises to boost credit for small businesses and farmers, increase financial transparency, enhance digital financial oversight, improve communications with foreign investors and educate Brazilians.
All this will help make it easier and cheaper to do business in Brazil, said Campos Neto, who took office on Feb. 28. Among his priorities is making the real a fully convertible currency, reducing barriers on foreign exchange to make it a reference currency for South America.
"A convertible currency opens up the potential for much greater (economic and financial) stability. There's great demand from neighboring countries for accounts in reais here. Brazil is a huge part of GDP in the region," Campos Neto said.
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