Circular No. 3874 — Dispenses on the Disclosure of the Fixed Component of the Constitutional Funds Interest Rate (TFC)

The Collegiate Board of the Central Bank of Brazil, in a session held on January 3, 2018, considering the provisions of Provisional Measure No. 812, of December 26, 2017, and Resolution No. 4,622, of January 2, 2018,

RESOLVES:

Art. 1 The Central Bank of Brazil shall disclose, on the last business day of the month preceding its effectiveness, the fixed component of the Constitutional Funds Interest Rate (TFC), according to the following formula:

Fixed component of TFC = (BA x CDR x FP x TLP Fixed Interest Rates), where:

I - BA corresponds to the Default Bonus, as provided for in Article 1, item II, of Resolution No. 4,622, of January 2, 2018;

II - CDR corresponds to the Regional Imbalance Coefficient, as provided for in Article 1, item III, of Resolution No. 4,622, of 2018;

III - FP corresponds to the Program Factor, as provided for in Article 1, item IV, of Resolution No. 4,622, of 2018; and

IV - TLP Fixed Interest Rates correspond to the adjustment factor “ak” and the interest rate “Jm”, determined in accordance with Article 3 of Resolution No. 4,622, of 2018.

Sole Paragraph. For the factor indicated in item II, the Central Bank of Brazil shall use the last available data published by the Brazilian Institute of Geography and Statistics (IBGE).

Art. 2 The Department of Statistics (Dstat) and the Department of Open Market Operations (Demab) shall disclose, through a joint act, the fixed component of the TFC, including electronically.

Sole Paragraph. The Departments referred to in the main text are authorized to adopt the necessary measures for the implementation of the provisions of this Circular.

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

Paulo Sérgio Neves de Souza Sidnei Corrêa Marques Acting Director of Economic Policy, Acting Director of Monetary Policy,