Circular No. 3.418

CIRCULAR No. 003418 ------------------ Provides for foreign currency loan operations referred to in Resolution No. 3.622 of 9 October 2008. The Board of Governors of the Central Bank of Brazil, in an extraordinary session on 4 November 2008, based on arts. 10, item V, and 11, item III, of Law No. 4.595 of 31 December 1964, and on art. 7 of Resolution No. 3.622 of 9 October 2008, D E C I D E D: Art. 1 This Circular provides for foreign currency loan operations carried out by the Central Bank of Brazil, in the form of Resolution No. 3.622 of 9 October 2008, with guarantees constituted by Advance on Foreign Exchange Contracts (ACC) and Advance on Delivered Foreign Exchange (ACE) operations. Sole paragraph. The operations referred to in the caput shall be carried out by means of an auction, in which banking financial institutions authorized to operate in the foreign exchange market may participate. Art. 2 The loan may be preceded by a sale of foreign currency by the Central Bank of Brazil, with repurchase and resale commitments, the characteristics of which shall be defined in the auction referred to in the sole paragraph of art. 1. § 1 The formalization of the loan referred to in this circular shall be conditioned upon the granting of ACC and ACE with the funds obtained in the committed operation referred to in the caput. § 2 The amount of the loan shall be equivalent to the amount of the ACC and ACE granted under the terms of § 1 and offered as collateral to the Central Bank of Brazil. § 3 The repurchase rate of the foreign currency by the Central Bank of Brazil shall be defined, under the terms of the communication referred to in art. 4, based on the cut-off interest rate of the auction referred to in the sole paragraph of art. 1. Art. 3 The financial institutions shall update each month or, at any time, upon determination of the Central Bank of Brazil, the list of ACC and ACE offered as collateral. Sole paragraph. The information referred to in the caput shall be sent, by means of an electronic file, in a document to be defined jointly by the Department of International Reserve Operations (Depin), the Department of Monitoring of the Financial System and Information Management (Desig) and the Department of Information Technology (Deinf). Art. 4 Depin shall issue a communication providing for the characteristics of the operations and the procedures to be observed for their execution. Art. 5 This circular enters into force on the date of its publication. Brasília, 4 November 2008. Mario Torós Director