Brazil's Bolsonaro to sign central bank autonomy bill on Wednesday

Credit: REUTERS/ADRIANO MACHADO

BRASILIA, Feb 22 (Reuters) - Brazil's president Jair Bolsonaro will on Wednesday 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 on Monday.

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.

(Reporting by Lisandra Paraguassu and Sabrina Valle)

((Sabrina.Valle@thomsonreuters.com;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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