Central Bank of Brazil
If you're from a country other than Brazil, you might not be as familiar with Brazil from a financial standpoint. It's completely understandable, as even financial details in your own country may be just a tad bit confusing. But if you're thinking at all about investing in Brazil or dealing at all with them financially, it's time you learn a little bit about a key part of the financial institution in Brazil: the Central Bank of Brazil
. This bank has been around a long time and plays a huge role in how Brazil does things economically and financially.
The Four Facts about the Central Bank of Brazil
Fact #1: The Central Bank of Brazil is the Highest Monetary Authority in Brazil
In many other countries, the financial backbone is composed of two or more different organizations. In other words, it's diversified. However, with Brazil, the Central Bank of Brazil is the highest monetary authority. What that means is that they are the “top dog” in Brazil and are responsible for deciding everything when it comes to Brazil's money
. They do not have to answer to any other organizations or even to the government, although the government does monitor them to ensure that there is nothing wrong being done.
Fact #2: They Govern Both Money and Economics
Few financial organizations in the world are responsible for both a country's money and economics, but in Brazil, the Central Bank is the governing body for both. This means that things like the interest rate, monetary policy
etc. fall squarely on the shoulders of the Central Bank
. The Central Bank of Brazil is linked with the Ministry of Finance, which helps them with the financial decisions for the country. However, ultimately, it's the Central Bank that does it all with finances and economics.
Fact #3: They Were Founded Over 40 Years Ago and Were Founded by Three Different Institutions
While some countries have financial institutions that have been around for centuries, the Central Bank of Brazil is rather new. Founded in 1964 by the Bureau of Currency and Credit, the Bank of Brazil, and the National Treasury, the Central Bank of Brazil continues to govern the country's finances and economics. Because the Central Bank was founded by three different organizations, they have this ability to adequately govern both.
Fact #4: They Have Been Robbed
Considering the Central Bank is such a huge financial and economical institution, it may be shocking to most that they've fallen victim to crime. However, that is certainly the case as the Bank was robbed in 2005 at the Bank's Fortaleza branch. The purported thieves were a gang of burglars who managed to disable the bank's internal alarms and sensors, making it so that the crime went unnoticed until a couple days later. All in all, the thieves made off with roughly $68 million USD, and have never been caught. Other than this one case of crime, the Bank has remained a safe place for the country and its citizen's money.
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