BRAZIL
Brazil is a large emerging‑market economy, richly endowed with natural resources and a complex external and fiscal position.
Its net external liabilities remain substantial: NIIP stood at about –45% of GDP in 2023, with gross external debt at around 33.7% of GDP, and external debt servicing needs are moderate (under 10% of GDP annually). The current account deficit narrowed to about 1.4% of GDP in 2023, expected to remain near 1.5%medium‑term as exports and net public saving improve. Public debt stood near 76% of GDP at end 2024, with a fiscal deficit of roughly 7.8% of GDP in 2023.
Brazil faces mounting fiscal pressures: inflation above 5%, interest rates near 14–15% (highest in two decades), and rising debt servicing burdens fuel investor unease and constrain credit conditions. Export‑oriented sectors remain a relative strength, but geopolitical tensions and looming tariffs on U.S. trade raise downside risks to growth and employment (potentially reducing GDP growth by 0.2 percentage point).
Growth moderated to an estimated ~2% in 2025, down from ~3.4% in 2024, with credibility seeking a firm medium‑term fiscal framework and structural reforms to restore confidence and debt sustainability.
Summary
BNP Paribas has been present in Brazil since 1950, with a business centre in Sao Paulo, providing corporate solutions for corporate clients. The bank offers comprehensive domestic and international cash management and trade finance solutions, including access to the local clearing house. These services include local payment products (Boletos, TED, Pix - Instant Payments, tax & utility), collection (issuance of boleto), investment options (CDB, Repo, Investment Sweep), intraday, overdraft,), e-banking (Connexis) and specialist capabilities in escrow accounts to manage funds related to acquisition and commercial agreements. The combination of solutions and dedicated customer services offer a highly competitive alternative to local banking services for multinational corporations doing business in Brazil, and Brazilian companies seeking expansion overseas.
Currency
Brazilian real (BRL)
| 2019 | 2020 | 2021 | 2022 | 2023 | |
| Exchange rate: BRL per USD | 3.94 | 5.16 | 5.40 | 5.16 | 4.99 |
Source: https://www.b3.com.br/pt_br/market-data-e-indices/servicos-de-dados/mar… , November 2024.
- The Brazilian central bank is the Banco Central do Brasil (BCB - www.bcb.gov.br).
Bank supervision
- Brazilian banks are licensed and supervised by the BCB.
- The Securities and Exchange Commission (CCVM - www.cvm.gov.br ) is responsible for regulating the securities market in Brazil.
Bank accounts
- A company is considered resident in Brazil if it is incorporated in Brazil.
- On certain occasions, non-residents may be treated as residents because their branches, local agents or representative offices operate in Brazil.
| Within BRAZIL | Outside BRAZIL | |
| Local Currency | Permitted without restriction, not freely convertible |
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| Foreign Currency |
| Within BRAZIL | Outside BRAZIL | |
| Local Currency | Permitted with restriction, convertible |
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| Foreign Currency | Permitted with restrictions |
- Lifting fees may be applied on payments between resident and non-resident accounts.
BNP Paribas Cash Management Capabilities
| Cash collections | |
| Cheque collections | |
| Direct debit collections | |
| Domestic incoming transfers | |
| Virtual IBAN | |
| Virtual accounts | |
| International incoming transfers | |
| Card acquiring |
| Cash withdrawals | |
| Cheque payments | |
| Direct debit payments | |
| Domestic outgoing transfers | |
| Commercial cards | |
| Virtual cards | |
| International outgoing transfers | |
| SWIFT gpi | |
| Real-time international payments through BNP Paribas’ network | |
| Card issuing |
| Local e-Banking | |
| Global e-Banking - Connexis | |
| SWIFT/ host to host |
Payments & collections
In Brazil, Pix - Brazil Instant Payment transactions has become the most used payment method for low value retail transactions, followed by credit cards and debit cards. The use of digital wallets, such as PayPal, PicPay and Mercado Pago, gathered with the payments institutions is also rising.
In November 2020, the Banco Central do Brasil launched PIX, an instant payments scheme. The settlement infrastructure, called the Instant Payment System (SPI), is available 24 hours a day, seven days a week, via mobile devices, online banking or ATMs. PIX allows payments to be made via aliases.
Electronic banking services are available from all banks. There is no national electronic banking system in Brazil, so companies use banks’ proprietary services.
Transaction and balance reporting, and transaction initiation services are available.
Many companies operating in Brazil exchange data electronically with banking and commercial counterparties via VANs (value-added networks) and EDI protocols.
The number of transactions performed by bank accounts with internet banking access in Brazil increased by 38% to 82.7 billions from Q2 2023 to Q2 2024. 93% of this number is from mobile banking. Mobile banking has become Brazil’s preferred channel for banking operations.
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| CIP-SITRAF | Type | |
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COMPE | Type |
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- Credit transfers are used by companies to pay salaries and suppliers, and to make benefit payments.
- Credit transfer volume and value increased 48.08% and 9.72%% respectively in 2023, on 2022 figures, to 62.5 billion, with a value of BRL 73.4 trillion.
- Credit transfers (TEDs) can be settled on a same-day basis via the STR or CIP-SITRAF. There is no minimum value threshold for TEDS. There is no value limit for TEDs.
- Boletos are bar-coded bills issued by a seller to a buyer. Boletos with a value below BRL 250,000 can be settled through CIP-SILOC with funds available on a next-day basis. Boletos with a value of
BRL 250,000 and above are settled via the STR on a same-day basis. - In November 2020, Banco Central do Brasil launched PIX, an instant payments scheme. The settlement infrastructure, called the Instant Payment System (SPI), is available 24 hours a day, seven days a week, via mobile devices and online banking. PIX allows payments to be made via aliases. Transactions are settled on a real-time gross settlement basis. Participation in PIX is mandatory for all financial institutions and payment providers with more than 500,000 active customer accounts. There are currently 837 participants. SPI is operated by the central bank and has a centralized architecture based on the ISO 20022 messages standard.
- Cross-border transfers can be made via SWIFT and settled through correspondent banks abroad.
- Bilateral trade transactions between Argentina and Brazil can be settled in both BRL and Argentine peso (ARS) through the Payment System in Local Currency (SML).
- Direct debits (débitos automáticos) are used for regular payments, such as utility bills.
- Direct debit volume increased 38% in 2023, on 2022 figures, to 11.03 billion. Value decreased 2.32% to BRL 2.7 trillion.
- The cheque is a payment instrument used by both consumers and companies. However, check use is in decline as alternative electronic payment methods become more popular.
- All cheques are truncated and processed as electronic items by COMPE, up to T+2.
- Cheque volume and value declined 20% and 21% respectively in Q1 2024 compared to Q1 2023, to 46.4 million, with a value of BRL 190 billion.
- Card payments are very popular, especially for retail transactions.
- There were 162.521 million debit cards and 206.184 million active credit cards in circulation at the end of 2023.
- Debit card volume increased 4.59% to 16 billion and the value decreased 0.84% to BRL 975 billion in 2023, on 2022 figures.
- Credit card volume and value increased 11% and 13% respectively in 2023, on 2022 figures, to 18 billion, with a value of BRL 2.3 trillion.
- Visa, MasterCard and American Express-branded payment cards are the most widely issued. Contactless payment cards are available.
- The vast majority of Visa and MasterCard payments are processed through acquirers like Cielo, Rede and Getnet.
- The majority of cards issued have EMV chips.
- Mobile-only credit card services are available.
- Contactless payment cards are issued. Transactions using NFC saw exponential growth in 2020. Most contactless transactions occur via credit card.
- There was 230,233 ATMs in Brazil at the end of 2022.
- There was 21.3 million POS terminals at the end of 2022.
- More than 100 banks participate in the Banco24Horas shared ATM network operated by TecBan.
- The dominant electronic wallet schemes in Brazil are reloadable pre-paid stored value cards offered by banks.
- Contactless payments, using the NFC (near-field communication), have been an increasing tendency. Credit transactions increased 31.1%, on Q4 2023 figures. The debit function has increased 35.2%, on Q4 2022 figures.
- The use of digital wallets, such as, Apple Pay, Google Wallet, PicPay and Mercado Pago is rising.
Short term investments
Interest payable on credit balances
- Interest-bearing current accounts are not permitted.
Demand deposits
- Demand deposit accounts do not receive interest payments. Funds can be withdrawn without notice. Cheques and electronic transfers can be used with demand deposit accounts.
Time deposits
- Time deposits such as CDB (Certificado de Depósito Bancário) are available in BRL and are generally issued for investments over 30 days due to tax applied up to 30 days.
Treasury (government) bonds
- The National Treasury auctions discounted Treasury bonds (letras do tesouro nacional - LTNs, letras financeiras do tesouro - LFTs and notas do tesouro nacional - NTN-C) on a daily basis.
- Domestic commercial paper is widely issued by companies denominated in BRL.
Repurchase agreements
- Repurchased agreements (repo's) are available in Brazil.
Bank guarantee
- Bank guarantees are not used in Brazil.
BNP Paribas Trade Finance Capabilities
| Documentary credits | |
| Documentary collections |
| Bank guarantees | |
| Standby letters of credit |
| Receivables | |
| Payables | |
| Inventory |
| Connexis Trade | |
| Connexis Supply Chain | |
| SWIFTNet Trade for Corporates | |
| Connexis Connect | |
| Connexis Guarantee | |
| SWIFTnet Supply Chain |
BNP Paribas is among the most prominent trade finance and working capital solutions providers to corporates headquartered or doing business in Brazil. With a team of six trade finance managers supported by experienced back officers, the bank offers a comprehensive range of cross-border and domestic trade finance and working capital solutions, including cross-border inventory solutions, domestic payables programmes BRL/USD etc., and local solutions such as pre-export financing options (ACC/ACE and NCE), Agribusiness solutions (Crédito Rural, Funcafé and CPR/CDCA), Crédito Rural and BNDES financing.
International trade
- As a member of the Mercosur (Mercado Común del Sur – Southern Cone Common Market) regional common market, Brazil applies Mercosur customs policies and regulations.
- Mercosur has trade agreements with Bolivia, Chile, Colombia, Cuba, Ecuador, Israel, Mexico and Peru.
- Mercosur has signed a free trade agreement with the European Union. The agreement has not yet been ratified by the EU or by Mercosur member states.
- Brazil and the USA have a protocol relating to trade rules and transparency: the Agreement on Trade and Economic Cooperation (ATEC).
- Brazil operates free trade zones in Manaus, Tabatinga, Macapá/Santana, Guajará-Mirim, Pacaraíma, Bonfim, Cruzeiro do Sul and Brasiléia/Epitaciolândia.
| Imports | Crude petroleum | Electrical equipment | Pesticides | Refined petroleum | Automotive parts |
| Primary Import sources | China (24,12%) | USA (15,41.0%) | Germany (5,24%) | Argentina (5,09%) | Russia (4,24%) |
| Exports | Wood pulp | Iron ore | Soybeans | Corn | Crude petroleum |
| Export markets | China (28.63%) | USA (11,71%) | Argentina (4%) | Netherlands (3,47%) | Spain (3%) |
| 2018 | 2019 | 2020 | 2021 | 2022 | |||
| Exports | - goods USD m | 239,522 | 225,800 | 210,707 | 284,012 | 340,328 | |
| - services USD m | 35,378 | 34,275 | 28,471 | 31,482 | 40,291 | ||
| Imports | - goods USD m | 196,147 | 199,253 | 178,337 | 247,648 | 296,175 | |
| - services USD m | 71,374 | 69,765 | 49,104 | 58,439 | 79,909 | ||
| Current account as % GDP | – 2.5 | – 3.4 | 1.7 | -2.8 | -2.7 | ||
Sources: https://www.bcb.gov.br/estatisticas/historicosetorexterno, December 2024.