The Central Bank of Brazil is a public legal entity, that is, it is an autarchy directly responsible for the country's monetary policies, it is the main monetary authority. Before its creation, on December 31, 1964, the bodies responsible for monetary policies in Brazil were the Superintendency of Currency and Credit (SUMOC), Banco do Brasil and the National Treasury, acting in monetary control, acting as a government bank and issuing paper money, respectively.
Basically, the functions of the Central Bank of Brazil are focused on overseeing the country's monetary and exchange policy and overseeing the national financial system. Specifically, the main functions of BACEN are:
- issuance of paper money;
- receipt of reserve requirements from commercial banks;
- carrying out rediscount operations and liquidity assistance loans to financial institutions;
- formulation, execution and monitoring of foreign exchange and financial relations policy;
- organization, discipline and supervision of the National Financial System, the Brazilian Payment System and the National Housing System and ordering of the financial market.
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Economy - Brazil School
Would you like to reference this text in a school or academic work? Look:
DANTAS, James. "Brazilian central bank"; Brazil School. Available in: https://brasilescola.uol.com.br/economia/banco-central-brasil.htm. Accessed on June 27, 2021.