On Apr. 18, BRZ CB informed on criteria for dealer accreditation
BRZ CB issued Instruction 466 on criteria for accreditation/de-accreditation of dealer institutions that will operate with the department of international reserves (Depin).
The purchase and sale of foreign currency by BRZ CB, on the interbank market, will be carried out by Depin exclusively with institutions accredited for this purpose (dealers).
Forex Transactions
Depin with dealers will do public offerings via computerized system, electronic auction.
Also, via telephone auction system; direct contracting; trading via electronic platform.
At the discretion of BRZ CB other procedures may be used, such as electronic mail.
Authorized Dealers
Dealers selected from institutions authorized to operate in foreign exchange market.
Accreditation is limited to one institution per financial conglomerate by evaluation process based on the weighted average calculation of enumerated factors in Ins 466.
The evaluation period will last for twelve months from May 2024 to April of 2025.
To be accredited as a dealer, the institution must satisfy the listed criteria.
Including be in operation for at least 3 years; have a good economic and financial situation and capitalization; as well as ability to maintain normal operations.
BRZ CB will authorize up to 20 institutions as foreign exchange dealers in each period.
Effective period of each dealer's accreditation will be 12 months, Jun 2024-May 2025.
Dealers Obligations
Authorized dealers must inform BRZ CB on the determining factors of forex market.
Participate in compulsory exchange auctions promoted by BRZ CB; quote, whenever requested, rates of purchase and sale of foreign currencies; negotiate as required.
Also, provide liquidity to foreign exchange market; report operations daily to BRZ CB.
Information reported on operations by dealers will be maintained strictly confidential.
Effectiveness
Instruction 466 enters into force on Jun. 1, 2024, revokes Ins 277, see #126423.
