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Brazil’s president Jair Bolsonaro will this week sign into law the legislation recently approved by Congress that grants full autonomy to the country’s central bank, he said in a Facebook post.
The new legislation aims to guarantee that the institution’s operational independence is completely free of political interference, set fixed four-year terms for the bank’s president and directors, and tighten rules on their exit from office.
The central bank already has de facto autonomy to implement the policies it deems necessary to achieve its inflation-targeting goals, but the bank president is technically a member of the government’s cabinet and is appointed by Brazil’s president.
Central bank directors’ fixed four-year terms will no longer coincide with the country’s presidential election cycle. At present, the board is renewed with each incoming government.
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