Circular No. 3906 — Amends Circular No. 3,874 of January 3, 2018, Regarding the Disclosure of the Constitutional Funds Interest Rate (TFC)

The Collegiate Board of the Central Bank of Brazil, in a session held on June 28, 2018, having regard to the provisions of Article 2 of Law No. 13,682 of June 19, 2018, and Resolution No. 4,622 of January 2, 2018,

RESOLVES:

Art. 1 The summary of Circular No. 3,874 of January 3, 2018, shall be amended as follows:

“Provides for the disclosure of the Interest Rate of the Constitutional Funds (TFC), as governed by Law No. 13,682 of June 19, 2018, and Resolution No. 4,622 of January 2, 2018.” (NR)

Art. 2 Circular No. 3,874 of 2018 shall be amended as follows:

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

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

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

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

V - FL corresponds to the Location Factor, as provided for in Article 1, item VI, of Resolution No. 4,622 of 2018.

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“Art. 2 The Corporate Risks and Operational References Department (Deris) and the Open Market Operations Department (Demab) shall jointly publish, by joint act, the fixed component of the TFC, including electronically.

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

Reinaldo Le Grazie Tiago Couto Berriel
Monetary Policy Director Director of International Affairs and Corporate Risk Management

Carolina de Assis Barros
Director of Administration