Company: BBD
Filing Date: 2025-03-31
Form Type: 20-F
Source: 0001292814-25-001244
Chunk: 168

Company: BANK BRADESCO
Filing Date: 2025-03-31
Form: 20-F
Item: Item 4
Chunk 168
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 to the sum of foreign transactions undertaken by the financial institution to which loan funds are to be directed.
 
4.B.70.02-09 Foreign currency position
 Operations in Brazil involving the sale and purchase of foreign currency may be conducted only by institutions authorized by the Central Bank of Brazil to operate in the foreign exchange market.
 Beginning in 1999, the Central Bank of Brazil adopted a foreign exchange free float system, which gave rise to increased volatility. Since mid-2011, the Brazilian real has depreciated against the U.S. dollar and the Central Bank of Brazil has intervened in the foreign exchange market to control the foreign rate volatility.
 The Central Bank of Brazil does not impose limits on long and short positions in foreign exchange operations for banks authorized to operate in the foreign exchange market.
 Standards that address foreign exchange markets are frequently changed by the CMN and the Central Bank of Brazil.
 In December 2022, Law No. 14,286/21 entered into force, which deals with the Brazilian foreign exchange market, the Brazilian capital abroad, the foreign capital in the country and the provision of information to the Central Bank of Brazil, with the aim of modernizing, simplifying and bringing greater legal certainty regarding such matters, considering the best international standards and practices as well as the positioning of Brazil in the global economy. In view of this, CMN published CMN Resolutions No. 5,042/22 and No. 5,056/22, and the Central Bank of Brazil published BCB Resolutions No. 277/22, No. 278/22, No. 279/22, No. 280/22 and No. 281/22, aiming to regulate foreign exchange operations.
 In summary, the main changes that the new exchange rate framework presents are the following:
 
·                     The Central Bank of Brazil will have responsibility to regulate foreign currency accounts in the country,                  
    including the requirements and procedures for opening and operating them. The Central Bank of Brazil may expand, depending on the regulation,
     the possibility of individuals and legal entities being holders. The ownership of foreign currency accounts in the country is still limited 
                 to companies, such as brokers, credit card administrators and other sectors specified by the Central Bank of Brazil;            
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·                  Opening of deposits abroad was already possible, but the project expands and reinforces this, by stating               
    that institutions authorized by the Central Bank of Brazil will be able to allocate, invest and direct funds raised here or abroad for
                                          loan and