8. Central Bank of Brazil

Página 8

The Central Bank of Brazil (BACEN) is one of the most important institutions for the Brazilian economy. Its creation, in 1964, had as its main objective to control the national currency and guarantee the economic stability of the country. BACEN is a federal autarchy, linked to the Ministry of Economy, and has technical, operational, administrative and financial autonomy.

BACEN is responsible for implementing the monetary, exchange rate, credit and foreign financial relations policies, defined by the National Monetary Council (CMN). In addition, BACEN is the main executor of the Brazilian Payment System (SPB) services, which include the transfer of funds between banks, interbank operations and check clearing.

The BACEN's mission is to ensure the stability of the currency's purchasing power and a solid and efficient financial system. To this end, the institution supervises financial institutions, ensuring their soundness and compliance with regulations. BACEN is also responsible for issuing physical currency (notes and coins) and carrying out rediscount and loan operations to financial institutions.

Among the main functions of BACEN, the following stand out: inflation control, through the implementation of monetary policy; regulation and supervision of financial institutions; control of the flow of foreign capital into the country; internal and external public debt management; and control of the country's credit system.

BACEN is composed of a Board of Directors, a President and eight Directors. The President and Directors are appointed by the President of the Republic and approved by the Federal Senate. The term of office is four years and may be renewed. The Board of Directors is composed of the President of BACEN and the Directors. This Board is responsible for defining BACEN's internal policies and supervising their execution.

BACEN also has an internal structure composed of specialized departments, such as the Department of Banking and Payment System Operations (DEBAN), the Open Market Operations Department (DEMAB) and the Inspection Department (DEFIS), among others.

To ensure the transparency of its actions, BACEN regularly releases reports and bulletins on the Brazilian economy, monetary policy and the financial system. In addition, it holds press conferences and publishes relevant information for society and the financial market on its official website.

For applicants, it is important to understand that BACEN is an extremely relevant body for the country's economy. Its role in regulating and supervising the financial system is crucial for Brazil's economic stability and development. Therefore, knowledge about BACEN is a differential for those who wish to enter public careers in the financial and economic area.

In short, the Central Bank of Brazil is an institution that plays a fundamental role in the Brazilian economy. With its policies and actions, BACEN seeks to guarantee the stability of the currency and the financial system, contributing to the country's economic development.

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99. National Monetary Council