Brazil

Banco Central do Brasil (BCB) is the apex monetary authority of Brazil and serves as a pivotal component of the Brazilian Financial System. BCB was formed on December 31, 1964, under Law No 4,595, and functions as a completely autonomous federal institution whose headquarters are located in Brasília. This financial institution has a legal obligation to maintain the purchasing power of the Brazilian Real, the national currency, by managing the country's monetary policy and controlling inflation via the Selic interest rate benchmark set by it. Apart from ensuring monetary stability in Brazil, the BCB is responsible for the regulation of financial institutions in Brazil, managing the nation's foreign exchange reserves, and serving as a significant force behind financial innovation, including the creation of the Pix payment system and the Drex digital currency.

Price stability, the maintenance of the purchasing power of the Brazilian real, and the creation of a stable, efficient, and competitive financial system are some of the functions performed by the Central Bank of Brazil (BCB). To achieve the above objectives, the bank enacts the monetary policies of Brazil by means of its Monetary Policy Committee (Copom), through which the benchmark Selic interest rate is set in order to help control inflation at the target rate of 3.00%. Being the "bank’s bank" and the chief agent of the government, the BCB has the monopoly over the issuing of national currency, the management of foreign exchange reserves of Brazil, and extensive supervision over the banking institutions, fintechs, and financial infrastructures of the country so that the credit remains solvent. Apart from that, the BCB actively works towards the promotion of innovations and financial inclusion in Brazil through its retail infrastructures such as the Pix instant payments mechanism, public auditing infrastructure Registrato, and Open Finance and Drex digital currencies.