Brazil's Central Bank Could Control Its Own Money, Defying Lula
- On Wednesday, a Brazilian Senate committee advanced a bill granting the Central Bank of Brazil financial autonomy, allowing it to manage its own budget independently of federal government rules.
- While a 2021 law already granted operational independence to set interest rates, the institution's administrative spending currently remains tied to federal budget rules and fiscal limitations.
- Central Bank Governor Gabriel Galipolo argues the measure is essential to retain skilled staff and ensure continued investment in Pix, Brazil's most widely used instant payment system.
- President Luiz Inacio Lula da Silva's administration opposes the proposal, warning it amounts to a 'quasi-privatization' that eliminates a revenue surplus currently used to reduce public debt.
- The proposal now heads to a full Senate vote and then the lower house of Congress, with investors closely monitoring the bill's progress as a tense election year tests Brazil's institutional stability.
12 Articles
12 Articles
Brazil's Central Bank Could Control Its Own Money, Defying Lula
Brazil · Markets Key Facts —The vote. A key Senate committee approved a constitutional change giving Brazil’s central bank control of its own budget. —The change. The bank would leave the federal budget and fund itself from its own revenues. —Why now. Backers want to shield the institution as a heated 2026 election stirs market […] The post Brazil’s Central Bank Could Control Its Own Money, Defying Lula appeared first on The Rio Times.
Brazil Senate committee backs central bank autonomy despite Lula resistance
A Brazilian Senate committee on Wednesday advanced a bill to grant the central bank financial autonomy, boosting its independence in a move opposed by President Luiz Inacio Lula da Silva's administration.
Representative of the monetary authority reinforces the importance of the financial, administrative and budgetary autonomy of the body
The proposal grants financial and budgetary autonomy to the monetary authority, withdraws the body from the Union budget and includes protection of the Pix in the Constitution
The Senate's Constitution and Justice Committee (CCJ) approved two Proposed Amendments to the Constitution (PECs) on Wednesday (10) that deal with different topics: the creation of special retirement for health and disease control agents and the granting of financial autonomy to the Central Bank. Both texts now go to a vote.
PEC Rapporteur, Senator Plinio Valério, rejected the latest amendments tabled at the CCJ, including the amendment by the Leader of the Government in the Senate, Jacques Wagner.
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