Trade with Brazil: a practical guide to CHF/BRL payments

Brazil is Switzerland’s most important trading partner in South America and cross-border invoices raise more than one payment question. A company needs to decide whether to trade in Brazilian real (BRL), US dollars or Swiss francs, where the conversion will take place and whether the funds will move through a domestic or international route. Those decisions determine who carries the currency exposure and how clearly the final CHF cost or revenue can be measured.

Why does trade with Brazil require specific payment decisions?

Brazil is Switzerland’s main export market in Latin America. In 2024, Switzerland exported approximately CHF 3.13 billion of goods to Brazil, mainly pharmaceuticals and chemicals, machinery and precision instruments, according to the Swiss Federal Department of Foreign Affairs. Imports reached just under CHF 1.64 billion and principally comprised precious metals and agricultural products.

Economic ties extend beyond trade: at the end of 2024, Swiss investment in Brazil totalled CHF 15.4 billion, making Switzerland the country’s third-largest investor, while Swiss companies employed 93,508 people in Brazil.

The EFTA–Mercosur free trade agreement was signed in September 2025. It is not yet in force: the Swiss State Secretariat for Economic Affairs says Parliament will consider it during the summer and autumn 2026 sessions.

Source: Swiss Federal Department of Foreign Affairs, Bilateral relations Switzerland–Brazil, updated 1 February 2026

The invoicing currency determines who carries the FX exposure

A BRL invoice creates a direct CHF/BRL exposure for a Swiss importer whose cash is mainly in francs: if the real strengthens before payment, more CHF will be needed. A USD invoice makes the importer’s visible exposure CHF/USD, but the supplier may still reflect its own USD/BRL costs or risk in the negotiated price. A CHF invoice transfers more of the conversion task to the Brazilian counterparty.

The direction reverses for a Swiss exporter. Invoicing in CHF or USD places more FX exposure on the Brazilian customer. Invoicing in BRL simplifies the customer’s local payment but leaves the Swiss company exposed until the BRL is used or converted.

The commercial price, settlement currency and payment route therefore need to be assessed together.

How can a Swiss business pay a Brazilian supplier?

Option 1 - Paying through USD can involve two conversion points

Possible route:

CHF

USD

BRL credited

USD/BRL Conversion in Brazil

International payment

CHF

USD

International payment

BRL credited

USD/BRL Conversion in Brazil

CHF

USD

International payment

BRL credited

USD/BRL Conversion in Brazil

The Swiss buyer controls the CHF/USD conversion, but may have less visibility over the rate and charges applied if the funds are converted again in Brazil. As a result, the buyer may not know in advance exactly how many BRL will ultimately be credited to the supplier’s account. The Banco Central do Brasil explains that payment orders can arrive in foreign currency or BRL, but residents are paid in reais. Where conversion takes place in Brazil, the rate is negotiated with an institution authorised to operate in the FX market.

Option 2 - Converting directly into BRL changes the route

Possible route:

CHF

BRL

BRL credited

Domestic BRL Payment

CHF

BRL

BRL credited

Domestic BRL Payment

CHF

BRL

BRL credited

Domestic BRL Payment

SwissFx’s currency capabilities offer local and international BRL payments. A business can convert CHF into BRL, hold the balance in a multi-currency account and send a local BRL payment. The amount to be credited to the supplier’s account can therefore be established before the payment is sent, rather than depending on a second conversion in Brazil.

This does not necessarily mean that paying directly in BRL is always cheaper than paying in USD: the invoice price, FX margin, payment charges and final amount credited still need to be compared.

How can a Swiss exporter collect revenue from Brazilian customers?

Possible route:

Brazilian Customer

Domestic BRL payment

Held, used or converted

BRL Collected

Brazilian Customer

Domestic BRL payment

Held, used or converted

BRL Collected

Brazilian Customer

Domestic BRL payment

Held, used or converted

BRL Collected

SwissFx also offers local BRL collection capacities. The customer can pay through a domestic route while the Swiss exporter receives BRL within its multi-currency setup. The company can convert the funds into CHF, retain them for a planned conversion, or use eligible BRL receipts against BRL suppliers or operating costs. Matching same-currency receipts and payments is a form of natural hedging: it can reduce the gross amount converted, but not a remaining net exposure or timing mismatch.

The invoicing entity, local account details, transaction eligibility, payment reference, supporting documents and reconciliation process should be confirmed before the first invoice. The wider choices involved in collecting and repatriating emerging-market revenue also depend on what the business plans to do with the funds after receipt.

Case study: what can a BRL 2 million invoice ultimately cost in CHF?

Consider a Swiss food importer that agrees today to pay BRL 2 million for mangoes in three months. The supplier price is fixed in reais, but the CHF cost remains open. Using illustrative rates, the calculation is:

How exchange-rate movements change the CHF cost of a BRL 2 million invoice

Illustrative rates only. Figures exclude FX margins, payment fees, taxes and other transaction costs. They are not forecasts or quotations.

A move from BRL 7.00 to BRL 6.50 per CHF would increase the illustrative cost by CHF 21,978, even though the supplier did not change the invoice. Waiting leaves the outcome open until conversion. If the amount and payment date are sufficiently certain, an eligible forward can instead establish the exchange rate in advance.

Compare the full payment outcome, not only the transfer fee

The relevant comparison is the complete economic result. For each route, record the commercial price in the agreed currency, every conversion, the rate and FX margin, transfer charges and possible deductions, the final BRL amount credited or CHF amount received, processing time and reconciliation requirements.

This is also a useful extension of the landed-cost analysis for imported goods. A low visible transfer fee does not show whether the supplier receives the required amount or whether another conversion has been embedded elsewhere.

How can businesses manage recurring or future CHF/BRL exposure?

The approach should match the timing, certainty and direction of the underlying trade flow. Spot conversion may suit an imminent payment. Progressive conversion can distribute execution dates. Holding BRL may support recurring payments, while using BRL collections against BRL costs can reduce the net amount requiring conversion.

For known future exposure, SwissFx offers both deliverable forward contracts and non-deliverable forwards (NDFs) for buying and selling BRL.

• A deliverable forward fixes a rate for a future exchange and results in the agreed currencies being delivered at maturity.

• An NDF manages the financial effect of exchange-rate movements without delivering the underlying BRL. It is settled through a payment based on the difference between the contracted forward rate and a reference fixing. The business must therefore arrange the underlying BRL conversion and supplier payment separately.

Having both structures available allows the transaction and risk-management method to be assessed together rather than assuming that one format fits every BRL exposure.

Choosing the right approach for Brazil payments

Trading with Brazil involves more than choosing between BRL, USD and CHF. The invoicing currency, conversion points and payment route determine who carries the FX exposure, how much visibility each party has over the final amount and what the transaction ultimately costs or delivers.

Assessing the complete payment flow — rather than looking at the exchange rate or transfer fee in isolation — helps a business understand where each conversion takes place, who controls it and when the currency exposure begins and ends. It can then choose a payment, collection and risk-management setup aligned with the timing and direction of its underlying trade flows.

Whether you pay Brazilian suppliers or collect revenue from Brazilian customers, SwissFx brings together BRL conversion and multi-currency capabilities, local BRL payment and collection routes, and eligible FX risk-management solutions within a single setup.

Important: this article is provided for general informational and educational purposes only. It does not constitute financial advice or a recommendation to use any particular product or strategy.