Why do we have to close an exchange operation for loans or equity contribution?

In Brazil, all financial transactions with foreign currencies shall be converted into the local currency, the Brazilian Real (BRL). This means that any foreign capital entering the country has to go through an exchange operation. This process allows the Central Bank to statistically manage foreign direct investments in the country. In addition, this registration is imperative for future remittances, such as the payment of dividends. It is crucial that foreign companies make an in-depth analysis before entering the Brazilian market, considering hedging strategies to protect their investments against exchange rate fluctuations. NewCo Latam has a business cell specializing in the capitalization of companies in Brazil, making it a valuable partner for foreign companies wishing to establish themselves in the country.