Brazil gives some exporters more time to settle FX contracts

Reuters

SAO PAULO, Oct 23 (Reuters) - Brazilian exporters facingfinancial problems will be given more time to settle theirforeign exchange contracts, the central bank said on Wednesday,adding that the change will have no impact on the currencymarket.

Brazil does not allow companies to keep foreign currency inthe country and exporters need to convert their dollars intoreais within 750 days of signing a foreign exchange contractrelated to their exports.

But exporters under special circumstances, such as thosefiling for bankruptcy protection, will have as many as 1,500days to settle those contracts, according to a new central bankrule.

The central bank will determine which cases may benefit fromthe new rules, a bank spokesman told Reuters.

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