OECD invites Brazil to normalize its financial system

The Organization for Economic Co-operation and Development (OECD) has sent Brazil an invitation to join two instruments aimed at standardizing the rules of international financial flows and the provision of services between countries. The Central Bank announced that it had received the invitation on Thursday.

“The first document refers to standards for normative acts on international financial flows, including payments, transfers, loans, investments, as well as the purchase and sale of foreign currency. The other, in turn, essentially refers to the provision of services across borders – such as international consultancy, legal and architectural services,” the monetary authority said in a statement.

The invitation, according to the Central Bank, does not oblige Brazil to fully adopt the recommendations and parameters of the instrument. “No OECD member country has adhered to 100% of the code’s recommendations. There is the possibility of accepting and adhering, of accepting with reservations, of accepting with a timetable and of rejecting with justification.

Countries are however encouraged to join based on their own capacities and circumstances, including not joining if unprepared. Brazil’s monetary authority has not specified which recommendations it will adopt, if any.

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Don F. Davis