On February 18, the Senate Economic Affairs Committee approved a new amendment to the bill guaranteeing the autonomy of the Central Bank. The senators have expanded the entity’s responsibilities, empowering it to mitigate fluctuations in economic activity level and ensuring the soundness and efficiency of the National Financial System. The bill will be sent to the plenary session as a matter of urgency.

The bill, introduced by Senator Plínio Valério (Partido da Social Democracia Brasileira – allied with the ruling party) establishes fixed four-year terms for the president and directors of the Central Bank, making it possible to serve two consecutive terms. Furthermore, it proposes that the Bank president take office on the first working day of the third year in office of the country’s President – to stagger the Central Bank’s administration with that of the presidential mandate.  

Although the committee had already passed the proposal in November last year, the plenary introduced a new amendment requiring the text to be referred back to the committee. The senators agreed that by enacting the two new objectives, the Central Bank will be given greater transparency and accountability. Once the senators have provided their endorsement, the initiative will be ready to be discussed on the floor, which is expected to happen in the next few days.