On April 11, President Jair Bolsonaro announced the introduction to Congress of a complementary bill that seeks to guarantee the autonomy of the Central Bank. The Government’s proposal, which aims to make the Bank independent from the Executive, will be sent to the Chamber of Deputies in the coming days.
According to Onyx Lorenzoni, Minister of the Civil House, the initiative sent by the Government foresees a four-year term for the president of the central bank, not coinciding with the term of the President of the Republic. In addition, the proposal would remove the status of minister for the president of the bank, and eliminate the possibility that he/she be dismissed over monetary policy disagreements with the Executive.
Currently, the central bank does not have ministerial status per se, but its president has all the prerogatives of a Minister of State, as he is formally linked to the Ministry of Finance. This would change if the National Congress approves the proposed bill. According to Lorenzoni, “it is important to protect the currency independently of the Government in office”.
In addition, the Executive announced the submission of another bill that seeks to regulate the appointment of officials of financial institutions, so that “the leaders and administrators of public banks, such as the Bank of Brazil and Caixa, are approved by the central bank, in line with the technical criteria established by the National Monetary Council”. Currently, only the leaders of private entities are approved by the central bank. The two bills have not yet formally entered the Chamber of Deputies.