International
support

In more than 90 countries

Your contact

image contact
masque image contact

Antonio GARRIDO
Head of International Desk Latin America

Support by the
Crédit Agricole group

Last updated: August 2024

The Crédit Agricole group is present in Brazil through a subsidiary of Crédit Agricole CIB, Banco Crédit Agricole Brasil (bank for Brazilian and foreign multinationals). The private banking division, Crédit Agricole DTVM, was sold in 2022 to the Brazilian bank Safra. CA Mid-Cap Advisors, a subsidiary of the Crédit Agricole group specializing in mergers and acquisitions, operates in Brazil via its network of partners abroad.

The CA Group International Desk Latin America supports the Group's corporate clients in Brazil in carrying out their operations on site, including banking advice, opening resident accounts, research and optimization of financing.

It relies on Group entities and leading local partner banks. For non-bankers, the International Desk offers the support of local law or accounting firms and its leading partners in business internationalization.

+

Means of payment

With Brazil

Company cheque

Bank cheque

SWIFT transfer

Bill of exchange

Promissory note

Documentary remittance

Documentary credit

Usage

Weak / None

Common

Common

Weak / None

Weak / None

Common

Common

+

Advice from the
international desk

General Information

 

Brazil has once again become an essential investment destination, due to:

* Its weight in the world economy: its GNP is now the 9th in the world, it is the driving force of Latin America.

* The size of its domestic market, relatively well protected, which makes it one of the top 5 in the world for many sectors.

* The middle class represents 44.5% of the population (2023), with significant purchasing power due to consumption habits.

* Its natural resources: the country also stands out for its vast natural resources, including 13% of the planet's fresh water, 30% of tropical forests and the greatest biodiversity on the planet.

* Iron ore alone represents nearly 8.9% of national exports, just behind soybeans. But other minerals are also attracting attention, such as niobium, essential in sectors such as technology and aerospace. Brazil has 90% of the world's reserves. It is also the third largest exporter of graphite, an important element in electric car batteries.

* In 2023, renewable energies were responsible for 93.1% of electrical energy production in Brazil. In this same sector, hydraulic power remains the main player but wind and solar power are increasing.

* Even if the potential of the domestic market makes the country highly attractive, Brazil remains relatively protected. It is therefore often recommended to consider local implementation.

On this point, it's worth noting the perfectionism of Brazilian banks' control departments when it comes to identifying the final beneficiaries of companies, which can lead to delays.

From a purely cultural point of view, Brazilians are very warm, open and benevolent towards the French, who generally have no problems adapting. France shares with Brazil several cultural elements in art, architecture, literature and gastronomy, which are recognized by Brazilians.

Brazil is the only Portuguese-speaking country in Latin America. It is also the language used in business circles, along with English to a lesser extent. Spanish is often understood by the Brazilian population, especially in the south of the country. However, learning Portuguese remains essential for making contacts and facilitating integration into professional and social life.

In order to cope with cumbersome bureaucracy, foreign customers will need to be patient with administrative procedures; it is therefore common practice - and highly recommended - to use the services of an experienced legal and tax firm, even for simple matters.

When it comes to business appointments, punctuality is highly valued. To establish a climate of trust before any negotiations, it's customary to talk informally about family, travel, sports and lifestyle. What's more, it's not uncommon for certain familiarities to be established in the course of the business relationship (such as being on first-name terms, etc.). Finally, it is often frowned upon to insist on the differences between the French and Brazilian business approaches, as this could be resented by the Brazilian partner.

Means of Payment & Banking Specificities

At the end of 2021, Law 14.286/2021 was amended, and a New Foreign Exchange Framework (“Novo Marco Cambial”) was set. The measure unifies and modernizes a set of rules on foreign exchange transactions and promises to simplify these operations, meeting OECD best practices with a view to developing the long-term convertibility of the Real.

The law will eventually make it possible for individuals and legal entities to hold foreign currency accounts in Brazil, as well as to open deposit accounts abroad, and makes it easier for non-residents to open an account in Brazil. The new legislation came into force in 2023.

Slight improvements have already been observed, such as the lifting of the obligation to register intercompany loans sent from abroad in foreign currency below USD 1 million with a Central Bank system.

The aim of this law was to modernize the system, make it more efficient and faster, and attract more foreign investment to Brazil. Today, the Brazilian currency is partially convertible, but not transferable. In order to carry out foreign exchange transactions, companies have to comply with mandatory declarations and justifications before exchanging currencies. Finally, foreign currency accounts in Brazil are very exceptional.

When issuing a transfer to Brazil, it is advisable to indicate, in addition to the beneficiary's account number (no IBAN reference in this country), the full name of the beneficiary according to Portuguese language standards, his or her address as well as information on the economic reason in English or Portuguese, etc.).

On the other hand, for payments in Brazil, the introduction of PIX, an instant digital payment method operating 24/7 in Brazil, in 2020, has really changed the business environment in Brazil. Today, over 514 million accounts have been registered for 151.2 million legal entities with a PIX account, and a growing number of companies (14.6 million 06/2024).

On 05/07, a new record was set for the number of transactions carried out in a single day: 224 million transactions for 120 billion reais.

Finally, the financial system is also involved in ESG initiatives, notably with financial envelopes from public banks such as Caixa Econômica Federal or state development agencies, as well as the participation of major private banks in ESG-related projects.

The “Amazon Plan”, for example, idealized by Itaú, Bradesco and Santander, proposes 10 measures to the sector that have been designated in favor of biome conservation, bio-economy development, investment in sustainable infrastructure and guaranteeing human rights in the Amazon.

+

Available offers in this country
through our bank or our partners

Entering
new markets

Find out more

Secure
your transactions

Find out more

Finance
your growth

Find out more

Optimise
your cash flow

Find out more