Brazil’s Senate voted overwhelmingly to approve a bill that would establish the autonomy of the central bank to reduce political interference in monetary policy and align the country with other major economies.
Senators voted 56-12 in a remote session to pass the bill, which still needs to be voted on by the lower chamber of Congress to deliver on a campaign promise by President Jair Bolsonaro.
Although Brazil’s central bank has administrative autonomy from the government, it is not fully independent. The bank’s governor is considered a member of the president’s cabinet of ministers.
The bill introduces conditions for appointing and firing bank directors, who will have fixed four-year terms that will no longer coincide with the country’s presidential term. At present, the board is renewed with each incoming government.