Brazil president to sign central bank autonomy bill

Tuesday 23 February 2021 14:10 CET | News

Brazil's president Jair Bolsonaro has decided to sign into law the legislation recently approved by Congress that grants full autonomy to the country's central bank, according to Nasdaq.

The new legislation aims to guarantee that the institution's operational independence is completely free of political interference, set fixed four-year terms for the bank's president and directors, and tighten rules on their exit from office. The central bank already has de facto autonomy to implement the policies it deems necessary to achieve its inflation-targeting goals, but the bank president is technically a member of the government's cabinet and is appointed by Brazil's president.

Central bank directors' fixed four-year terms will no longer coincide with the country's presidential election cycle. At present, the board is renewed with each incoming government.

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Keywords: Brazil, central bank, autonomy, legislation, Central Bank of Brazil, bank
Categories: Banking & Fintech
Countries: Brazil
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