Currency Swap Between Brazil And China

The Central Bank of Brazil (Banco Central do Brasil – Bacen) has been duly authorized to perform currency swap transactions with central banks of other countries, within the limits and under the conditions set by the Brazilian Monetary Council (Conselho Monetário Nacional – CMN), pursuant to the provisions of article 6 of Law No. 11908, of March 3, 2009¹. Under the Brazilian Financial System, CMN is the body responsible for establishing exchange policy rules and guidelines for foreign currency transactions².

Bacen is also authorized to maintain deposit accounts in Brazilian currency (Real) in the name of foreign central banks and institutions domiciled or headquartered abroad which provide clearing, settlement and custody services in the international market, in accordance with the CMN regulation³.