MercoPress. South Atlantic News Agency

Brazilian credit card users offered predictable exchange rate for deals in foreign currency

“We believe consumers will feel more comfortable knowing how much they are spending,” Goldfajn explained.

Brazil's Central Bank (BCB) President Ilan Goldfajn Wednesday announced a new rule for credit card charges in foreign currency: the sum consumers will have to pay in reais will be calculated on the basis of the exchange rate at the day of the transaction. The measure, however, will become effective as March 1, 2020.

 Brazil's Central Bank (BCB) President Ilan Goldfajn Wednesday announced a new rule for credit card charges in foreign currency: the sum consumers will have to pay in reais will be calculated on the basis of the exchange rate at the day of the transaction. The measure, however, will become effective as March 1, 2020.

Goldfajn underlined the idea was to increase predictability for the consumer, who will at all times be able to know the exact amount to be paid and therefore avoud unpleasant surprises.

“We believe consumers will feel more comfortable knowing how much they are spending,” Goldfajn explained. “And that will make their lives easier,” he added.

The Central Bank pledged to standarise historical exchange rates to make then readily available for credit card users who need to calcaulate their expenditures.

In order to set the amount in reais at the date of the purchase, the invoice must identify the original currency and its equivalent value in reais converted in accordance with the new rule.

A BCB statement also indicated that the new method needs “the customer expressly choosing to accept it.”