Central Bank of Brazil
The Central Bank of Brazil (Banco Central do Brasil) is the central bank of Brazil and the primary body responsible for issuing currency in the South American nation. Founded in 1964, it was created to regulate money supply, control inflation and promote economic stability. The bank also serves as a lender of last resort and provides banking services to other public entities such as state-owned banks.
History
In 1945, President Getúlio Vargas founded Banco Nacional de Desenvolvimento Econômico e Social (BNDES), which served similar functions that are now carried out by the Central Bank of Brazil today. However, BNDES lacked full authority over monetary policy due its connection with politics so legislation passed in 1962 paved way for creation a new autonomous institution that would become known as Banco Central do Brasil when it officially began operations on February 14th 1964 under president João Goulart’s administration.
Mission & Objectives
The mission statement set forth by Central Bank states: “To strengthen financial system security; guarantee price stability through managing inflation targets; contribute to sustainable growth accompanied by social development; foster confidence amongst Brazilian citizens regarding national currency and macroeconomic policies.” In addition to its core function regulating money supply within domestic markets, CB has objectives related increasing international capital flows into country’s economy while supporting foreign exchange market interventions if necessary at home or abroad . It does this using tools like reserve requirements , open market operations or credit limits depending on situation at hand .
Organization & Governance Structure
The governing board currently consists seven members appointed by President Dilma Rousseff including an Executive Director who acts Chairman/CEO position leading day-to-day activities alongside six Deputy Directors representing various areas such Monetary Policy Research International Relations Financial System Stability Payment Systems Credit Operations Treasury etcetera . Additionally there National Monetary Council made up representatives from government ministries each given vote power decide matters relating long term goals same time being held accountable any auditing decisions taken place outside scope institutional autonomy granted them Constitution 1988 article 192 clause 2 subparagraph 3).
