In the Plenary session held on June 30, Deputies adopted Temporary Measure 930/20, aimed at reducing the exposure of the banking system to the volatility of the Exchange rate created by the COVID-19 pandemic. The text was sent to the Senate and is expected to be seen in the short term.

The measure concerns the fiscal treatment given to the value of investments made by banks, financial and other institutions authorized to operate by the Central Bank, in a company branch, affiliate or agency domiciled or controlled abroad.

“The asymmetric nature of this fiscal treatment throws up various undesirable results. The need to provide protection which exceeds the value of the investment leads to operational inefficiencies, as the operating costs involved in the coverage increase, and these are often passed on to other actors in the economy,” said the Central Bank president Roberto Campos Neto.