Circular No. 3465 — Amends Circular No. 3,109 of April 10, 2002, and Annex I of the Cash Custody Regulation of the Central Bank of Brazil

CIRCULAR N. 003465

Amends Circular No. 3,109 of April 10, 2002, and Annex I of the Cash Custody Regulation of the Central Bank of Brazil, established by Circular No. 3,298 of November 1, 2005.

The Collegiate Board of the Central Bank of Brazil, in a session held on September 1, 2009, based on item II of Article 10 of Law No. 4,595 of December 31, 1964, and considering the provisions of Circular No. 3,438 of March 2, 2009,

D E C I D E D:

Art. 1 The summary, the main text of Article 1, paragraph 1 of Article 3, and the main text of Article 6 of Circular No. 3,109 of April 10, 2002, shall come into force with the following wording:

Summary:

"Establishes the Circulating Medium System (CIR), which regulates cash operations carried out by financial institutions holding Reserve Bank Accounts or Settlement Accounts." (NR)

"Art. 1 The Circulating Medium System (CIR) is established, which regulates cash operations carried out by financial institutions holding Reserve Bank Accounts or Settlement Accounts, among themselves and:

I - with the Central Bank of Brazil; and

II - with the Custodian." (NR)

"Art. 3 ..............................................

.......................................................

Paragraph 1 The formalization of requests for withdrawals, deposits, exchanges, transfers, and forwarding of cash is the direct and exclusive responsibility of the institutions mentioned in the main text of Article 1." (NR)

"Art. 6 Financial institutions holding Reserve Bank Accounts or Settlement Accounts may supply each other with excess cash, provided that:

................................................." (NR)

Art. 2 The meanings of the terms deposit, withdrawal, and exchange, contained in Annex I of the Cash Custody Regulation of the Central Bank of Brazil, established by Circular No. 3,298 of November 1, 2005, shall come into force with the following wording:

"Deposit: Operation of receiving cash in custody, in which monetized currency is transformed into non-monetized currency, through a credit in the Reserve Bank Account or Settlement Account in favor of the depositing institution, carried out by the Payment System (SPB). It originates exclusively from financial institutions holding Reserve Bank Accounts or Settlement Accounts." (NR)

"Withdrawal: Operation of withdrawing from custody, in which non-monetized currency is transformed into monetized currency, through a debit in the Reserve Bank Account or Settlement Account against the withdrawing institution, carried out by the Payment System (SPB). They are carried out exclusively by financial institutions holding Reserve Bank Accounts or Settlement Accounts." (NR)

"Exchange: Operation by which non-monetized currency from custody is swapped for monetized currency from the circulating medium. This operation alters the composition of banknotes and coins in custody, having no repercussion on the Reserve Bank Account or the Settlement Account. Metallic coins enter circulation exclusively through the exchange operation. The exchange can be carried out both with financial institutions holding Reserve Bank Accounts or Settlement Accounts, and with the public." (NR)

Art. 3 This Circular enters into force on the date of its publication.

Brasília, September 2, 2009.

Anthero de Moraes Meirelles Mario Torós Director of Administration Director of Monetary Policy