Banco Central do Brasil will put forward a bill to streamline and lower the costs of foreign currency exchange transaction in the country, with the eventual aim to have full currency convertibility in the coming years, Reuters reported, citing central bank President Roberto Campos Neto.
The proposal is ready to be submitted to lawmakers and it should be put to the vote soon, Campos Neto reportedly said.
The plan comes after Banco Central do Brasil in August made its first ever U.S. dollar sale in over a decade after the Brazilian real declined to about 4.20 per US$1, its lowest level in almost a year. The real has rebounded to about 4.07 against the dollar after the sale.
Speaking during an event in Brasilia, the central bank president pointed to foreign exchange interventions are a way to stabilize the market.
"Foreign exchange interventions act as a mechanism of stability in the foreign exchange market," Campos Neto said according to the Reuters report.
The central bank chief noted that Brazil's inflation is well-anchored, allowing for lower interest rates further following its July 31 rate cut to a record low 6.0%. The comments echo a central bank statement from August.
Campos Neto also predicted that Brazil's underperforming economy will start showing signs of recovery later in 2019.
