Circular No. 2884 — Regulates the Central Bank of Brazil's operations in foreign exchange and domestic public debt securities markets

CIRCULAR NO. 002884

Dispõe sobre a atuação do Banco Central do Brasil nos mercados de câmbio e de títulos da dívida pública interna.

The Collegiate Board of the Central Bank of Brazil, in a session held on May 6, 1999, having regard to the provisions of Article 10, item XII, and Article 11, item III, of Law No. 4,595, of December 31, 1964,

DECIDED:

Article 1. The Central Bank of Brazil shall operate in the foreign exchange and domestic public debt securities markets exclusively with previously accredited institutions ("dealers"), except when it concerns a public offering or an operation carried out, by force of law or regulation, directly with the Central Bank of Brazil.

Article 2. Proposals for purchase or sale, in both markets, when not conducted to meet a public offering, must be offered simultaneously to at least five "dealer" institutions.

Article 3. The Department of International Reserves Operations (DEPIN) and the Department of Open Market Operations (DEMAB), within the scope of their respective competencies, shall issue complementary norms and adopt measures intended to fulfill the provisions of this Circular.

Article 4. This Circular enters into force on the date of its publication.

Brasília, May 6, 1999

Luiz Fernando Figueiredo
Director