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What is the Central Bank of Brazil for?

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The entity responsible for guaranteeing the country’s monetary and financial stability.

It is independent and its main objective is to control inflation, maintain the stability of the purchasing power of the currency and guarantee the full functioning of the financial system.

To achieve these objectives, the Central Bank uses various tools, such as monetary policy and regulation of the financial system.

BACEN

Monetary Policy

Monetary policy is the set of measures adopted by the Central Bank to control the money supply and, consequently, the interest rate.

Regulation of the Financial System

The regulation of the financial system aims to guarantee the security and transparency of the financial market. In addition, the Central Bank is also responsible for ensuring exchange rate stability, i.e. controlling the exchange rate between the real and other currencies. This is done through exchange operations, which aim to increase or decrease the supply of dollars on the market.

Other Functions

Another important function of the Central Bank is to supervise and regulate financial institutions, such as banks, finance companies and brokers, in order to guarantee the security of deposits and the transparency of operations.

Summary

The Central Bank of Brazil is a fundamental institution for the country’s economic stability, acting to control inflation, maintain the stability of the currency’s purchasing power, guarantee the full functioning of the financial system and supervise financial institutions.



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